Sixth quarterly Accession watch report

“ABOUT THE LESS LESS POSITIVE THINGS”

July, 2010 “ABOUT THE LESS LESS POSITIVE THINGS” Sixth quarterly Accession watch report

Publisher: Foundation Open Society Institute - Macedonia For the publisher: Vladimir Milcin, Executive Director Prepared by: Macedonian Center for European Training and Foundation Open Society Institute - Macedonia Proof reading and Translation in to English: Abacus Design & Layout: Brigada design, Skopje Print: Propoint Circulation: 750

CIP – Katalogizacija vo publikacija Nacionalna i univerzitetska biblioteka ,,Sv. Kliment Ohridski”, Skopje

341.171.071.51(4-672EU:497.7)“2009/10“

ZA pomalku pomalku pozitivnite raboti : {esti izve{taj od sledeweto na procesot na pristapuvawe na Makedonija vo EU. - Skopje: Fondacija Institut otvoreno op{testvo - Makedonija, 2010.- 90, 86 str. ; 18x24 sm

Nasl.str. na pripe~atenoiot tekst : Abouth the less positive things. - Obata teksta me|usebno pe~ateni vo sprotivni nasoki. - Tekst na mak. i angl. jazik

ISBN 978-608-218-070-0

a) Makedonija - Za~‌lenuvawe - Evropska Unija - 2009-2010 COBISS.MK.ID 84505610 CONTENT

I. WHERE ARE WE IN JULY 2010? 5 2.7. Judiciary, Independence and Budget 32 1. THE GOVERNMENT IN A DIFFERENT UNIVERSE 6 2.8. Administration Court Track Record 33 2. READING COMPREHENSION 8 2.9. The Government and the ... 3. REVIEW STILL IN THE DRAWER 12 Constitutional Court Wrestling 34 4. MEDIA ENCAGED BY TOTALITARIANISM 14 2.10. Conclusions and Recommendations 34 5. THE VOICE OF CITIZENS 16 3. DIRE PRISONS 35 6. METHODOLOGY 18 3.1. Res, non verba! 35 3.2. Macedonia in Wonderland 36 II. ANALYSIS 19 3.3. Virtual Investments 37 1. POLITICAL DIALOGUE HITS ROCK BOTTOM! 20 3.4. Conclusions and Recommendations 39 1.1. Clashes Become Practice 20 4. ODYSSEY 2010 CONTINUES 40 1.2 Veljanovski – Government’s puppet? 21 4.1. VMRO-DPMNE’s Democratic Dictatorship 40 1.3. Opposition – Wrongdoer on Call 22 4.2. Might Over Right 41 1.4. The boycott continues 23 4.3. Conclusions and Recommendations 42 1.5. Parliamentary Committees in Action 24 1.6. Parliament – the Biggest 5. IS THERE POLITICAL WILL TO FIGHT CORRUPTION? 42 Non-governmental Organisation 25 5.1. Long Way to Go 43 1.7. Conclusions and Recommendations 27 5.2. Chain of Responsibility 44 5.3. Public Pressure Always Pays Off 46 2. POPULISM IN THE JUDICIARY 28 5.4. How Are Political Parties Financed? 47 2.1. Constitutional Amendments a bluff 28 5.5. Conclusions and Recommendations 47 2.2. Appointments and Dismissals – Mainly Partisan 29 2.3. Judge, Jury and Executor 30 6. PUBLIC ADMINISTRATION – PLACE FOR SMARTALIKES 48 2.4. Where are the Academy Candidates? 30 6.1. Consolidated, Yet Not Clear 49 2.5. Judiciary, Independence and Budget 31 6.2. Law on Civil Servants – Stick Rather than Carrot 50 2.6. Court Administration Remains Utopia 31... 6.3. New Budget adjustment, Old Story 52 6.4. Disconcerted Government 55 6.5. Non-assessible Civil Servants 59 6.6. Where are the Projects? 59 6.7. Conclusions and Recommendations 60 7. PUBLIC ENTERPRISES - PUBLIC PETS 61 7.1. Managers Come and Go 62 7.2. Political Parties Responsible for the Demise of PE 63 7.3. Conflict of Interest - Party breaker 65 7.4. Transparency in the Macedonian Way 66 7.5. Public Enterprises and European Integration 67 7.6. Conclusions and Recommendations 68 8. PRAISE OF FOLLY 70 8.1. Where Are the Employed? 71 8.2. Less Funds for Employment 71 8.3. Laconic Government 73 8.4. People and Deeds 74 8.5. Dirty Dozen Unit 76.... 8.6. Conclusions and Recommendations 78

III. CONCLUSIONS 80 1. ODD SURVEY 81 2. WHAT CAN BE DONE BY NOVEMBER 83 2.1. Successful Review 2010 83 2.2. Unsuccessful Review 2010 84 ...I... n October 2009, the Republic of Macedonia obtained a recommendation for opening accession negotiations from the European Commission (hereinafter: EC), but the actual date for the negotiations was not set by the Swedish Presidency, whereby Ithe issue was transferred to the agenda of the next Presidency1. The reason is clear: the name dispute with the Republic of Greece remains unresolved. The Swedish Foreign Minister, Carl Bildt, openly stressed WHERE ARE WE that “the responsibility for resolving bilateral issues primarily lies with the parties involved. You cannot wait for the world to resolve your IN JULY 2010? bilateral issue…. We cannot impose solutions! We cannot do that, nor do we want to do that”.2

1 The Council notes that the Commission recommends the opening of accession negotiations with the Republic of Macedonia and will return to the matter during the next Presidency, Council conclusions on enlargement – General Affairs Council meeting, Brussels, 7-8 December 2009; www.se2009.eu/polopoly_fs/1.27005!menu/ standard/file/111830.pdf 2 Prime-time news programme, Alsat, MTV 1, Alfa, from 22nd June 2009.

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In the course of the Spanish Presidency, Macedonia was again In this reporting period, other events relevant for Macedonia’s side-tracked and the date to start accession negotiations was not European agenda also took place. Notably, the celebration of 9th May set, although the Spanish Foreign Minister, Miguel Angel Moratinos - “Europe Day”, the meeting of high representatives from EU Member- encouraged that “the Spanish Presidency is committed to set the date States, the Western Balkans, Russia, USA and Turkey in Sarajevo on 2nd for opening accession negotiations with your country”3 during his visit to June, the meeting of the Stabilization and Association Committee in Skopje. However, Macedonia was again off the agenda of the European Skopje on 4th June and the meeting of the Stabilization and Association Council in Luxemburg, apparently “because Macedonia and Greece have Council in Brussels on 27th July. never been closer to a final solution for the name dispute as they are in this The document titled “Review to the Accession Partnership”6, which period”4, as explained by the Greek Minister of Foreign Affairs, Dimitris was submitted to the Government on 5th February and contains the Droutsas. Thus, it was considered better to postpone the discussion indicators against which EC will monitor the progress in 2010, is still concerning the date for accession negotiations for Macedonia. Such not on the Parliament agenda, nor was it discussed by the Committee statements were complemented by the European Commissioner for for European Issues or the National Council for European Integration Enlargement, Stefan Fule, who readily announced that Macedonia will within the Parliament. The present Quarterly Accession Watch Report will not need to wait for the next European Council in December, but a date analyse Macedonia’s progress against the above given developments. can be granted by the Council of Ministers of Foreign Affairs, together with Iceland, on the meeting scheduled for 27th July, provided the name dispute is solved. Unfortunately, the Council meeting went by, 1. THE GOVERNMENT IN A DIFFERENT Iceland received a date for accession negotiations, while the name UNIVERSE dispute remains unresolved and no solution seems to be seen on the Belgium took over the Presidency with the European Union on 1st horizon. The Conclusions from the Spanish Presidency, in the section July 2010. Once the consultations with civil society were completed on enlargement, do not even mention Macedonia and only refer to the in February 2010, the Belgian Secretary of State for European Affairs, following: “significant progress has been made in the negotiations with Olivier Chastelain, announced the six priorities proposed for the Belgian Croatia with the closing of three chapters and the opening of five. A Presidency aligned with the joint programme of the EU Presidency Trio chapter with Turkey has also been opened, and the negotiation process Spain-Belgium-Hungary7, those being: 1) implementation of the Lisbon of the Stabilization and Association Agreement with Serbia has been Treaty; 2) promotion of EU 2020 Strategy, which defines European unblocked“5. policies for the next decade; 3) international negotiations on climate change and energy; 4) implementation of the Stockholm Programme in 3 Prime-time news programme, Kanal 5, 20th April 2010. 4 Prime-time news programme, A1, 15th June 2010. 6 For more details on the document see the Fifth Quarterly Accession Watch Report 5 http://www.eu2010.es/en/transcripcion.html?video=/en/documentosynoticias/ “Who Needs a Parliament?”, April 2010, pg. 9. galeria_multimedia/videos/videoDirecto/videoDefecto.html 7 http://eutrio.es/export/sites/trio/comun/descarga/PROGRAMA_TRxO_EN.pdf 6 Where are we in july 2010? the field of justice, asylum and immigration; 5) continuation of the EU “super-delegations” were first renamed from EC Delegations into EU Enlargement Policy; and 6) preparations for the 2011 Budget and the Delegations to reflect the fact that they have greater political power. medium-term review of the financial perspective. They will assume the roles previously held by the Member-States during the 6-month presidency and will coordinate the work of the Member- The final version of the Belgian Presidency Programme reorganized States’ bilateral missions. the priorities into 5 components: 1) social and economic component (redefining sustainable development and competitiveness); 2) social Eight from these super-delegations will be located in Europe, those component (promotion of social cohesion, with higher standards, being in: Macedonia, Serbia, Norway, Switzerland, Ukraine, Armenia, better social services, fight against poverty and social exclusion, Georgia and Moldova. Twelve will be located in Asia and in the Pacific, better health and old age and fight against violence against women); and the remaining will be in Africa. The selection of the super- 3) environment (transition towards green economy); 4) the Stockholm delegations was made by the new Head of External Relations, Catherine Programme (consolidation and completion of the European Area of Ashton, in consultation with EU Member-States. Freedom, Security and Justice); and 5) external relations (establishment The importance of the EU 2020 Strategy was discussed in the of the European External Action Service (EEAS), further enlargement, previous Quarterly Accession Watch Report9. What is new in this Doha Round and regional trade agreements, protection and promotion reporting period is the fact that the European Council from 17th June of human rights, EU Summit with Africa). 2010 set the targets to be achieved by the new strategy10. Subsequently, the fifth priority of the Belgian Presidency will These two most important decisions taken by the EU should be address other, more important issues than Western Balkan enlargement. properly reflected in the Macedonian national strategy, in particular in Apart from the inevitable Country Progress Reports accompanied with the Ministry of Foreign Affairs (hereinafter: MFA) and the Secretariat the EC Enlargement Strategy published every November – the EU will for European Affairs (hereinafter: SEA). More distressing is the fact pay greater attention to the establishment of the European External that these policies were not adopted over night, but went through Action Service (hereinafter: EEAS)8, which is important for Macedonia a long consultation process with Member-States, and the civil as well. society across EU. Regretfully, the Macedonian Government acts as if Notably, 54 out of the 136 EC Delegations worldwide will be these developments are not important and as if they were adopted transformed into missions with the status of embassies authorized yesterday and would have no impact on the country’s future accession. to speak on behalf of EU as a whole. As of 1st January 2010, these 9 See Fifth Quarterly Accession Watch Report “Who Needs a Parliament?”, April 2010, 8 For more information see the document of the Finnish Institute for International pg. 8 and 9. Affairs, Rewriting the Ground Rules of European Diplomacy, 31 March 2010. 10 http://ec.europa.eu/eu2020/pdf/council_conclusion_17_june_en.pdf

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Nevertheless, that doesn’t stop the Government from constantly dominant are the positive comments and assessments on the work done reminding the general public that European integration is its most and less are the less positive notes”13. This “state-of-art” statement was important strategic priority. taken as the leitmotif for the present Accession Watch Report. From this perspective, the Government’s statements that the Since the Government accepted the remarks from Brussels as European reforms will be implemented even without a date for opening objective, we would like to address the contents of both press releases accession negotiations because of the name dispute with Greece are (issued by the SA Committee and the SA Council). The manner in which highly unlikely, since the Government has demonstrated (as many times EU documents should be read and reasons thereof were addressed in before) that it lives and plans in its own micro-universe, while its our First Quarterly Accession Watch Report14. Here, we would just like macro level is dominated by monuments and baroque-style buildings. to stress the fact that in its criticism EU uses “diplomatic” vocabulary since the reports are also intended for the EU citizens. 2. READING COMPREHENSION The analysis of EU documents, including the annual Progress Reports, In the period monitored, the Stabilization and Association Committee reveals that the EC uses neutral phrases, as it expects the governments (hereinafter: SA Committee)11 took place in Skopje, 4th June 2010, and to recognize criticism without “scaring” EU citizens (and Member- the Stabilization and Association Council (hereinafter: SA Council)12 States) on the possible future membership of that, still unprepared in Brussels, 27th July 2010. Both events were covered by the media, country. The key to the right interpretation of these phrases lies in the and, yet again, the statements of the government and the opposition verbs used. were completely opposite. While the opposition criticized, the Notably, in all its documents EC uses “positive” and “negative” verbs. government praised and rejoiced the fact that Brussels “reprimanded” Not to get lost in translation, the present analysis provides the verbs the opposition as well. Nevertheless, following the SA Council meeting, used in EC documents in their source language (English). The most the Prime Minister Gruevski gave “the most dramatic” statements of frequently used positive verbs are: welcomed, noted, acknowledged, all - “Obviously, yesterday the Republic of Macedonia received numerous encouraged, etc. The negative verbs, or in the words of Prime Minister positive remarks, many positive opinions and less less positive ones, thus Gruevski, “the less positive verbs” used are: urged, stressed, reiterated, reminded and recalled, underlined, underscored, pointed out, step up, 11 The Stabilization and Association Committee is a joint body comprised of represen- etc. Even the Macedonian translation of these verbs also implies their tatives from the Republic of Macedonia, the EC and EU Member-States, and its main negative context. task is to consider the implementation of the Stabilization and Association Agree- ment. 13 12 The Stabilization and Association Council is regulated by Article 108 of the Stabilization http://www.a1.com.mk/vesti/default.aspx?VestID=125811 and Association Agreement concluded between the Republic of Macedonia and the 14 See the First Quarterly Accession Watch Report “The Government Should Work 24/7 European Communities, and the Member-States, 2001. on the EU Agenda”, April 2009, pg. 12

8 Where are we in july 2010?

15 Not, let’s read the remarks contained in the press release (Encouraged) to continue disseminated by the Stabilization and Association Committee from 4th with implementation June and published by SEA. of the Ohrid Framework Agreement (Welcomed) NPAA Stabilization and Association Committee revision Positive remarks Negative remarks (Acknowledged) IPA – (Welcomed) the efforts (Efforts to) finalise and adopt the introduction of sectoral in addressing the OSCE/ amendments the Electoral Code and approach ODIHR recommendations revise the Voter’s List (Noted) good progress (Welcomes) the adoption (Further measures) to adopt the in innovation and of the Law on Parliament Parliament Rulebook information society (Welcomed) progress in (Welcomed) adoption of (Reminded) on the need to have legislative alignment in secondary legislation in sufficient financial and human respect to agriculture and the Police reforms resources fisheries (Noted) in the field of (Enhanced cooperation) between law anti-corruption policy – (Urged) to monitor closely the enforcement agencies to secure track the adoption of the new economic developments record of proper enforcement Criminal Code (Stressed) the importance of pursuing (Welcomed) the a prudent fiscal policy establishment of the (Acknowledged) progress High Level Committee made in legislative (Further efforts) to ensure effective on PAR chaired by the alignment in regard to implementation Prime Minister and the environment Special Group on PA with (Continuation of efforts) in the (Acknowledged) the a view to addressing the field of organized crime (integrated lifting of the visa regime outstanding issues intelligence system) (Noted) company law (Pointed out) thorough analysis and action plan 15 Press release is available at http://www.delmkd.ec.europa.eu/en/information_sour- ces/press_releasses_2010/2010-06-04.htm

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(Reiterated) need for continuous Stabilization and Association Council (Noted) intellectual efforts to enforce the IPR property rights (Recalling) the commitments from Positive remarks Negative remarks SAA (Noted) visa liberalization (Continuation of efforts) against (Urged) enforcement of the adopted organized crime (integrated legislation on road transport safety intelligence system) (Underlined) the importance to solve (Welcomed) efforts to (Reiterated) full implementation of (Welcomed) the new the open issues under the Energy implement the Law on the Law on Parliament, by adoption Energy Law Community Treaty Parliament of new Rulebook and to resume (Noted) the establishment formal coordination meetings (Stressed) consultations for law of the Inquiry Committee enactment for the incident in the (Step up) social policy and Parliament from 1st July employment and consultations with (Continued progress) stakeholders Police The analysis given in the table above shows that the country has (Noted) of continued (Utmost importance) to ensure performed well in the area of Police, Public Administration, NPAA, sectoral efforts on judicial independence and impartiality of approach to IPA programming, Framework Agreement, and information reform aimed at further judges and prosecutors society. In all other areas, the EC has noted progress, but immediately after strengthening the that, points out greater shortcomings. For example, in the part referring autonomy, independence, to the political dialogue, the EC first “welcomed” the adoption of the Law effectiveness and on Parliament (which was part of last year’s story), but immediately after professionalism in the judiciary that, in the second part of the sentence, the EC concluded that “further (Discussed) anti- (Utmost importance) political measures” were necessary to adopt the Parliamentary Rulebook, which is corruption – to further impartiality, the implementation one of the indicators of the Review of the Accession Partnership from 5 reinforce the legal laws to be enforced on political February 2010 (hereinafter: Review 2010). framework and to party financing, to review property The analysis of the press release issued by the SA Council16, on the strengthen the inter- declarations and conflict of interests other hand, gives an interesting twist, as given in the table below. agency cooperation

16 The press release is available at: http://www.sep.gov.mk/Default. aspx?ControlID=NovostiDetali.ascx&NewsID=1598

10 Where are we in july 2010?

(Welcomed) enhanced (Continuous efforts) to ensure (Welcomed) continued (Recall)that regional cooperation legal framework and the further transparency, professionalism active participation in and good neighbourly relations form establishment of the and independence of public the regional cooperation an essential part of the process of Special Group on PAR administration process including the moving forward towards the EU (Welcomed) the (Underscored) the commitment initiatives in South implementation of to continuously ensure effective Eastern Europe, the equitable representation enforcement Framework Agreement, Regional Cooperation of the Albanian ethnic notably concerning equitable Council and the community in the public representation of other ethnic contribution to the EU sector communities, use of languages, ALTHEA mission, and the decentralization and integration of completion of demarcation ethnic communities. of country’s border with (Concerned) by statements by Kosovo some political leaders that point (Recognised) appropriate (Importance) of using available in the direction of abandoning the macroeconomic mix in the resources in the most efficient way Ohrid Framework Agreement. Any context of the global crisis focusing public spending on purpose violence or threats of violence are with a high added value, such as unacceptable. investment in productive capacity (Encourages) all citizens and their (Particular importance) statistics – representatives to utilise the existing the Population Census scheduled for democratic mechanisms, including 2011 is particularly important the Parliament to advance their (Progress achieved) in the interests institutional preparations (Agree) media have an important for decentralized role in the promotion of tolerance implementation of IPA and better understanding (three components), while for the remaining two component preparations are on-going (Welcomed) annual revisions to NPAA

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The analysis of the SA Council press release indicates that Macedonia did not reinvent the wheel (as it reiterated, over and over again, the has a successful record in the area of the Police, NPAA and IPA same issues of concern for the EU in the last four years), and pointed management. Here, we would like to reiterate that IPA decentralized out the fact that in some areas we even managed to compromise our management was one of the Government’s priorities planned for 2009 previous success record (by demonstrating that the Parliament Law which is not fully implemented up to date. In the other areas, the SA is not enforced). Yet again, we were reprimanded for the excessive Council “notes” or “welcomes” certain activities, only to follow-on with political interference in the institutions (judiciary and fight against remarks on the problems identified in the same area by using verbs such corruption). Nevertheless, this did not prevent Prime Minister Gruevski as “reminds”, “particular importance”, “underlines”, “reiterate”, etc. to state: “I am pleased with the assessment from Brussels, as in a way it contests the claims from the opposition”17, adding that he expects Typical examples thereof are public administration and the that Republic of Macedonia will obtain a positive Progress Report from Framework Agreement, whose track records were acknowledged by EC this year. The basis for his optimism is unclear, since the conclusion the SA Committee. As regards Public Administration, the SA Council derived from the above given analysis shows that – in the style of the “welcomed” the enhanced legal framework and the establishment of Prime Minister - Macedonia obtained many negative criticism and less the Special Group on Public Administration Reform, but “reiterates” less negative comments and assessments on the reforms delivered. As that public administration should be transparent, professional and for the Progress Report for Macedonia 2010 which will be published independent. in November, it will probably be positive if the same interpretation The situation with the Framework Agreement is more distressing. The method is used by the Prime Minister. Stabilization and Association Council “welcomed” the implementation of equitable representation of the Albanian ethnic community, but 3. REVIEW STILL IN THE DRAWER “underscored” that the Framework Agreement implies also equitable representation of other ethnic communities, use of languages, The previous Quarterly Accession Watch Report addressed the decentralization and integration of ethnic communities. SA Council working document entitled “Review to the Accession Partnership” also expressed “its concerns” with the statements of certain political (hereinafter: Review 2010), which is a joint document of the EC and leaders and “reminded” that violence and threats are unacceptable. It the Government and contains the indicators against which the EC will did not forget to “encourage” citizens and MPs to use the democratic monitor the progress made by Macedonia for the next progress report. mechanisms to advance their interests and also mentioned the role of The Review 2010 was submitted to the Government on 5th February media in the promotion of tolerance and understanding. 201018. Considering the document’s importance, we recommended Our analysis shows that there is no place for satisfaction after the 17 http://www.vlada.mk/?q=node/5704 Stabilization and Association Council. On the contrary, the Council 18 See Fifth Quarterly Accession Watch Report “Who Needs a Parliament?”, April 2010, pg. 9.

12 Where are we in july 2010? for the same to be considered on a meeting of the Government, criteria and standards in the country”. Whether they convinced the distributed to all line ministries, as executive bodies, all in the light EU in their commitment remains to be seen in November when the of better coordination in delivering the indicators set therein. We also Progress Report for Macedonia 2010 will be published. In our opinion, recommended for the document to be considered by the Committee the Review 2010 remains a reference point for the analysis presented for European Issues and the National Council for European Integration in this report, where under each chapter we address the current state within the Parliament of the Republic of Macedonia, as most indicators of affairs against the indicators set in the document. in the document should be delivered by the Parliament in one way or The Review 2010 is not the only European agenda document in the another. drawers of the Government. It seems that all EU letters, conclusions, Nevertheless, that did not happen. As we assumed that it would statements, opinions, and documents share the same destiny. The not happen, we decided to publish the Review as Annex 1 to the Government, instead of reading and responding to the well-intentioned previous Quarterly Accession Watch Report in hope that it will remarks from the EU, continues to apply the strategy of blaming facilitate the fulfilment of the indicators. Why the Government, and everyone else, notably the opposition, for all its failures. In this period, SEA in particular, is unwilling to share the document with the other the Government and the MPs from VMRO-DPMNE took a step further and institutions directly involved in delivering the indicators set by the EC portrayed the opposition (and all other parties with different opinions) is difficult to understand. Moreover, why the Parliament does not insist as “state enemies”, who according a MP from VMRO-DPMNE “continue to on holding a session to discuss the document and get information blemish their own country in front of the international representatives”19 on the deliverables expected from it is even more unclear. If such a and lobby for Macedonia to receive a negative Progress Report this session took place, would the Parliament have adopted the Rulebook year. In addition, Prime Minister Gruevski further clarified that the prior to the meeting of the Stabilization and Association Council in opposition acts in such a way “for the purpose of flirting with the Brussels and would it have blamed its non-adoption on the opposition, international community and demonstrating cooperation to the detriment is a question that will probably remain unanswered. of the interests of the country”20. The importance of Review 2010 was confirmed by the Government of the Republic of Macedonia, when it reported on the document on the meeting of the Stabilization and Association Council held on 27th July in Brussels: “The Council was informed on the Government’s commitment to efficient reform implementation, in particular in the field 19 Video statement from Aleksandar Nikolovski: http://www.youtube.com/watch?v=2E9E- of judiciary, public administration, fight against corruption, economic Z0kYXs) reforms, for the purpose of enhancing the enforcement of EU accession 20 From the address of Nikola Gruevski on the 20th Anniversary of VMRO-DPMNE, 15th Jjune 2010.

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4. MEDIA ENCAGED BY TOTALITARIANISM intolerance, violence and terror. Brussels called on the Government to strictly sanction such behaviour and their promoters”22. The Macedonian The list of forgotten documents includes the joint statement from Association of Journalists (hereinafter: MAJ) responded as well, but the informal summit between the EU and the Western Balkan, which not by the Public Prosecutor who failed to recognize a criminal act in also included representatives from USA, Russia and Turkey. The meeting such a behaviour. The Government kept quiet, although aware of last nd th took place in Sarajevo, 2 June 2010, on the occasion of the 10 year’s Progress Report, where the EC noted that “Political interference Anniversary from the Zagreb Summit. The statement becomes even more in the media is a source of concern as it leads to self-censorship and important knowing that the meeting was organized as part of Spanish limits freedom of expression”23. Presidency activities with the aim to demonstrate a symbolic message that Western Balkan belongs within the EU. Once again, the EU, inter But, was the Government really quiet? The events that followed alia, reiterated that: “problems affecting the freedom of expression and indicate that the Government was far from silent, instigating directly the media need to be tackled as a matter of urgency”21. the developments in the media. The analysis of the events that took place in Macedonia related to First, we will start with analyzing the speech of Prime Minister the media in the aftermath of this informal summit, attended by the Nikola Gruevski, given on the occasion of the 20th Anniversary of VMRO- Minister of Foreign Affairs, Antonio Milosovski, leaves the impression DPMNE. In his short speech, the Prime Minister managed to defame that the Government of the Republic of Macedonia is purposefully some media on several occasions by referring to them as “non-principle” undermining what has already been noted as problem. In that respect, and “SDSM’s media hawks”, and even attempted to analyze their work: the Government assumes the same approach to the one applied to “SDSM people brag about having the owner of A1 TV, Velija Ramkovski, Review 2010 – instead of working to fulfil the indicators set therein, in their pockets, and that he will do the necessary work for them through the Government, for the time being, is successfully working 24/7 on his medium by fiercely attacking every step taken by VMRO-DPMNE… Not spoiling things further. long ago, Utrinski Vesnik was the medium that criticized whatever VMRO did... Today, Utrinski has the same attitude, but some other media have Such is the case with the media in Macedonia. Immediately after the become greater political party megaphones for Branko and SDSM”24. The meeting in Sarajevo, the capital of Macedonia, Skopje, was scribbled all ultimate message the Prime Minister send to the media is unambiguous. over with the graffiti “A1=SDSM”. Television A1 immediately responded With the statement uttered by our democracy-prone Prime Minister: by warning that: “the state of affairs in the media market may cost Macedonia a negative Progress Report since the EC has already noted 22 that by using the media the country promotes single-mindedness, http://www.a1.com.mk/vesti/default.aspx?VestID=123955, 6th June 2010. 23 http://www.sep.gov.mk/content/Dokumenti/MK/EK_izvestaj_2009_mk.pdf, pg. 17. 21 Statement from the Chair of the Meeting with High Representatives from Western 24 From the address of Nikola Gruevski on the 20th anniversary of VMRO-DPMNE, 15th Balkans, Sarajevo, 2nd June 2010. June 2010.

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“People have learned these tricks however, and treat the information broadcaster30. On 28th July however, Vesna Kovacevska Trpcevska, one broadcasted by these media with great reserve, knowing that they need of the laid off journalists from Television Kanal 5, addressed an open to double check the information“25, he is undoubtedly instructing the letter to Prime Minister Gruevski accusing his Chief of Cabinet, Martin public not to trust all those that dare criticize the Government, which Protuger, directly responsible for the lay-offs due to “disobedience”, – by definition – is totalitarianism. where she defines disobedience as “not wanting to have direct contact with Protuger himself”31. The management of Television Kanal 5 Ideology per se does not harvest results if not accompanied with responded to her letter by indicating that she was not fired, but offered additional instruments – most often spreading fear and intimidation. an amicable termination of employment contract32 and the Television This is what the Macedonian public was served on 28th June when publicly renounced any influence whatsoever from the Cabinet of the a member of the personal security of the Prime Minister attacked Prime Minister33. The Government and the Association of Journalists the cameraman from TV ERA, Goran Najdov, during the governmental also responded34. The Government denied the speculations presented, coalition consultations that took place at hotel “Best Western”26. while the Association of Journalists seriously condemned the lay-offs Initially, miscommunication with the security had allegedly happened, of journalists from Kanal 5, as well as those from Makfax that unknown but afterwards two members from Gruevski’s security confronted Najdov to the public until then. The Chief of Cabinet of the Prime Minister, and one of them physically assaulted the cameraman. The Association Martin Protuger also responded with an open letter35 trying to prove of Journalist of Macedonia condemned the event27, while the internal his innocence. control and professional standards unit within the Ministry of Interior initiated a disciplinary procedure against the security member28. The The content of Protuger’s open letter however, is nothing else but a incident was resolved by imposing a fine to the bodyguard of the Prime confirmation of all accusations addressed to him. First, in the letter he Minister Gruevski29. addresses the journalist on personal basis, although he claims he did not known her. Then, he uses the famous quotation from Maxim Gorki July also went by with a great deal of media manipulations. Notably, “Man – how proud that sounds”, eluding to the fact that he became “a by the end of the month, Television Kanal 5 laid off seven journalist man”, but wonders how much she succeeded in the same effort, thereby and three technicians due to allegedly financial problems of the

30 http://dnevnik.com.mk/?itemID=DF6164EE95E84D48AC37C6988F453122&arc=1 31 http://www.a1.com.mk/vesti/default.aspx?VestID=125858 25 Ibid 32 http://kanal5.com.mk/default.aspx?mId=37&eventId=63283&egId=13 26 http://a1.com.mk/vesti/default.aspx?vestID=124743 33 http://www.kanal5.com.mk/default.aspx?mId=37&egId=13&eventId=63319 27 http://www.kanal5.com.mk/default.aspx?mId=37&eventId=62195 34 http://zurnal.mk/mk/cont.asp?k=21208120405&s=27209153317&ID=28710134052 28 http://vesti.alfa.mk/default.aspx?mid=36&eventid=24340 35 http://www.mia.com.mk/default.aspx?mId=120&vId=75873149&lId=1&title=МАКЕ- 29 http://www.kanal5.com.mk/default.aspx?mId=37&eventId=62279 ДОНИЈА+-+ОРИГИНАЛНИ+ТЕКСТОВИ

15 Sixth quarterly Accession Watch report insulting her intelligence with the words: “accusing me for interfering second one being the conference titled “Institutional Mechanisms for in the editorial policy of the Television is absolutely not true. Still, I can Cooperation between the Parliament and the Civil Sector in the Republic understand them (referring to the opposition), since I consider them of Macedonia” organized by the association “Most”, 18th June in Skopje, to be part of an obvious and dirty political campaign where you are which followed the meeting between civil society organizations and playing the role of an extra, maybe even unconsciously... I wouldn’t MPs organized as part of Europe Day celebrations. know”. Finally, in the style of his leader, he disqualifies certain media The conference organized by EMRM was interesting and broadcasted with such a vocabulary that one should ask himself what is a person on the Parliamentary channel so that the broad public could view it. like that doing in the Cabinet of the Chief of State – “Somebody is From an event-driven conference aimed to promote European values profiting from yours and your colleagues’ misfortune. Some media, such and achievements from the perspective of the Schuman Declaration, the as a cheap daily newspaper with tasteless explicit contents for adults, as Parliament debate turned into an anti-European spectacle that focused well as some politicians whose careers are setting, are looking forward to on the non-democratic behaviour of neighbouring Greece rather than earn a credit or two from your story”. highlighting the most recent EU positive ventures. Obviously, the media will be in the focus of the Government in the Equally astounding was the meeting between MPs and civil society forthcoming period. The epilogue of this story will be addressed in organizations. From reasons unknown to us, the meeting did not include our next Quarterly Accession Watch Report covering the period July- MPs from the opposition. The MPs from the parliamentary majority September. first preached about the democratic ways of the Parliament as regards the cooperation with the civil society, and then patronized the CSOs 5. THE VOICE OF CITIZENS present lecturing them on the harm they do to Macedonia in the eyes The period covered by the present Quarterly Accession Watch Report of the international community when they criticize the country. included the celebration of 9th May –Europe Day (Schuman Day). The Similar atmosphere was created on the conference “Institutional Delegation of the European Union, the Government of the Republic of Mechanisms for Cooperation between the Parliament and the Civil Macedonia and civil society organizations organized events to bring EU Sector in the Republic of Macedonia”. Nevertheless, the conference closer to the citizens. was a positive experience for the civil society sector as it resulted Two important events are worth mentioning in the context with conclusions adopted by the parliamentary committee for European of Macedonia’s European integration – the first one being the issues. These conclusions are subject to analysis further in the Parliamentary Debate organized by the European Movement of the document. Republic of Macedonia (hereinafter: EMRM) on the topic “Europe, 60 In its reports, the EC continuously notes that civil society must Years after the Schuman Declaration”, that took place 7th May, and the actively participate in the democratic processes in the country, including

16 Where are we in july 2010? public policy making. On the last meeting of the Stabilization and States. The Treaty also anticipates dialogue (which is more than mere Association Council, EU did not forget to remind the Government that consultations) between the citizens, civil society and EU institutions, it should organize consultations with stakeholders in law-making. In notably the Commission, and thereby guarantees their participation in addition, IPA Regulation anticipates mandatory consultations with civil European decision-making. society organizations in the course of programming the assistance. The Council of Ministers’ meetings are now public and its debates Active citizen participation in the EU became mandatory when the and vote on European legislation can be followed. This also stimulates Lisbon Treaty entered into force. Informed citizens who can contribute the participation of civil society. Social dialogue is enhanced with to the democratic processes are one of the indicators that power- different consultation mechanisms and the tripartite social dialogue sharing in society works and that each pillar checks-and-balances each summit is now introduced between the European social partners and other. Therefore, EU will insist on hearing the voice of the citizens as the Union. regards the future development of the European society. Recently the EC prepared the so called Green Paper on the European What does the Lisbon Treaty stipulate in this regard? First it Citizens’ Initiative38 and opened the consultation process on the strengthened the power of the European Parliament (hereinafter: proposals contained therein. After closing the consultation process, the EP), elected by direct universal suffrage, notably in the domain of EC collected and analyzed the remarks from the consultation and drafted legislation (the co-decision procedure36 was extended to almost 50 new the document “Commission Staff Working Paper on the outcome of public areas), budget authority (EP now has equal footing with the Council consultation on the Green Paper on a European Citizens’ Initiative”39, for the entire annual budget, and not only for the non-compulsory and submitted it to the Council and the European Parliament together expenditure as was the case before), and political control37. with the draft-regulation on the European Citizen’s Initiative40. This draft-regulation stipulates the details on the civil society participation The Lisbon Treaty empowers citizens with greater and more in EU decision-making. significant participation in the decision-making process. It provides for the so-called right of citizens’ initiative, by means of which citizens It is only matter of time when the European institutions will be can ask the EC to propose draft-legislation provided they have collected obliged to consult their citizens when taking policy decisions that affect at least one million signatures from a significant number of Member- 38 Green Paper on European Citizen’s Initiative, Brussels, COM (2009) 622 final, 36 When the decision is taken jointly by the Council of Ministers and the European 11.11.2009 Parliament. 39 COMMISSION STAFF WORKING DOCUMENT, Outcome of the public con- 37 The Parliament elects the President of the Commission on the proposal from the sultation on the Green Paper on a European Citizens’ Initiative, Brus- European Council, but it must take into consideration the results from the European sels, SEC (2010) 370, 31.3.2010. Elections and thus the voters can directly impact the political agenda of the President 40 Proposal for a Regulation of the European Parliament and of the Council on the Citizens’ and his/her college. The same applies for the political positions of the College. Initiative, Brussels, COM (2010) 119 final, 31.3.2010, 2010 0074 (COD)

17 Sixth quarterly Accession Watch report their lives. Macedonia, as an EU candidate-country, will have to follow and other strategic documents of essential importance in the sectors suit and learn to take due consideration of citizens’ opinion instead monitored. of pursuing political party politics and agendas. The attempts made Free access to public information was also used in this reporting in the past to involve civil society in all democratic processes in the period, but since our FOI applications were not answered by all country are quite vague and dialogue needs to be incorporated within institutions addressed, the findings from their analysis will be included the democratic system itself, regardless of whether the Government in the next report. likes that or not. This report covers the period April-July 2010, except in regard to 6. METHODOLOGY the political dialogue considering the importance of the event that took place on 1st July in the Parliament. Apart from document analysis As present report’s purpose is to address the activities taken by the and desk research, interviews were also conducted for this report. political actors in Macedonia and to demonstrate whether they are in line with the national EU agenda, subject of analysis are the current 14 media outlets were monitored as well, those being: seven developments in the country’s European integration process, but also daily newspapers (Utrinski Vesnik, Dnevnik, Vest, Vecer, Vreme, Nova monitoring the progress in delivering the indicators set in the Review Makedonija and Spic) and prime-time new programmes on seven TV 2010, with special emphasis on those related to the political criteria. stations with national and satellite coverage, such as: A1, Kanal 5, Sitel, Telma, MTV 1, Alfa and Alsat41. Baseline for the monitoring is the documents of the Government, the EU, and media coverage of EU-related events in Macedonia. Government’s main documents subject to analysis are the following: “Review to the Accession Partnership” from 5th February 2010, “National Programme for the Adoption of the Acquis – Revision 2010” from December 2009 (hereinafter: NPAA 2010), EC Progress Reports 2008 and 2009 (hereinafter: Progress Report 2008 and 2009), Decision of the Council on the principles, priorities and conditions contained in the Accession Partnership with the Republic of Macedonia”, Brussels, February 2008 (hereinafter: Accession Partnership); Information on implemented activities from NPAA, Revision 2010 for the periods January-March and April-June; SEA Monthly Briefs; Conclusions from the EU Council; press releases issued by the Stabilization and Association Committee 41 Media Monitoring is a partnership project implemented with the NGO Info-Center from Skopje.

18 ...II... his Quarterly Accession Watch Report analyses the areas related to the political criteria and the sectors where Macedonia is expected to invest greater efforts to demonstrate progress in compliance with the indicators specified in the Review 2010. TFor that purpose we address the state of affairs in the Parliament and the judiciary, the latest developments connected with the Anti- discrimination Law and the fight against corruption, the implementation of the new Law on Civil Servants and the Public Administration Reform, ANALYSIS the current situation with the public enterprises and the National Agency for European Educational Programmes and Mobility. This quarterly report also throws light on the situations with the prisons as they too are part of the Review 2010. Each of these areas are viewed from the perspective of the Review 2010, which we published in our Fifth Quarterly Accession Watch Report titled “Who Needs a Parliament?”, dated April 2010 in Annex 1.

19 Sixth quarterly Accession Watch report

1. POLITICAL DIALOGUE HITS ROCK 1.1. Clashes Become Practice BOTTOM! The presence of non-uniformed armed persons without proper The second half of the year started. The time to fulfil the commitments clothing marks that were video-recording the Parliament triggered the from the EU Agenda is slowly, but surely passing. There are less than 3 scandal that followed the unsuccessful vote of the Law on Redundant months left until the publication of the new EC Progress Report for the Workers. This unprecedented event cannot be justified whatever the Republic of Macedonia. How will the EC assess the political dialogue in reasoning. Moreover, apart from the persuasions that their presence was the country or the progress made in regard to the benchmark specified in compliance with the law, the public did not receive clear and precise as “promote a constructive and inclusive dialogue, in particular in areas answers from the Parliamentary Speaker, Trajko Veljanovski, concerning which require consensus between all political parties, in the framework the purpose and the authority that issued the order for non-uniformed of the democratic institutions”? After the positive assessment in the and non-marked people to be present in the Parliament building. 2009 Progress Report, will the Republic of Macedonia be “unpleasantly Instead of the Speaker, the Minister of Interior, Gordana Jankulovska, surprised” next November remains to be seen. explained the events that took place in the Parliament, although the Less than 4 months before the publication of the Progress Report President of the Parliament is – by the virtue of the position - second and 5 months after the Review 2010, none of the 3 tasks defined in rank in the country. In the absence of answers from the Speaker, by the EC to sustain last year’s success has been fulfilled, those and once it become clear that the request for reinforcement came from being: 1) adopt and enforce amendments to the Parliament Rulebook; the security service of the Parliament, arguments prevail in favour of 2) full implementation of the Parliament Law, recruitment of staff at the fact that the matter at hand was not handled in compliance with parliamentary administrative services and steps to establish and initiate the law. the operation of the Parliamentary Institute; and 3) smooth operation Until all details and circumstances engulfing the event are disclosed of the National Council for European Integration, supported by relevant and prior to making final conclusions on the parties to be held institutions and capacity building for employees of the Administrative responsible and accountable for the events, the MPs continue with Support Unit within NCEI42. This, in conjunction with the current state mutual accusations. Allegedly, both sides were willing and prepared of affairs as regards the functioning of parliamentary democracy and to reach an agreement, but obviously, reaching that agreement proves the political dialogue in the country – with the clash in the Parliament to be too difficult for our political parties. In the meantime, harsh from 1st July and the events leading to it – hit rock bottom, and political rhetoric dominates the daily scene. The tone of the political obviously, this year the EC will negatively assess the political dialogue, dialogue and the use of inappropriate vocabulary, as we witnessed these unless immediate action is pursued. To meet the requirements, the days in the Parliament – despite regular admonition43 - is an indicator Parliament will need to act responsibly.

42 Review to the Accession Partnership, 5th February 2010. 43 On that occasion, Ambasador Fuere and the US Embassy condemned the event. 20 Analysis of the poor democratic capacity and absence of an environment for more arguments to demonstrate that he is more than a mere puppet in democratic debate. Slowly, but surely, the Macedonian Parliament, the hands of the Government. from the “cradle of democracy” where consensus is built and political As a reminder, the Parliament Law was part of the political dialogue promoted, turned into the place that undermines the image dialogue benchmark, which we had to fulfil in order to obtain the of the state. recommendation from the EC. Notably, violent clashes happened in the Parliament in September 2007. This was duly reported in the 1.2. Veljanovski – Government’s puppet? Progress Report 2008: “these developments raise serious concerns about the effective functioning of political institutions“44. In response, the It took several days for the Parliamentary Speaker to come forward Government developed an Action Plan on the implementation of the and publicly explain the clash in the Parliament. It took him another Accession Partnership, and included the following measure: “to follow- several days to schedule the coordination meeting aimed to identify up on the Report from the Inquiry Committee’s investigation of the measures to address the situation that occurred on 1st July. In the clashes in the Parliament”, but unfortunately the indicated report was meantime, the political parties accused each another and demanded never drafted due to the early Parliamentary elections and changed political responsibility from the other side. Instead of the Parliament composition of the new Parliament. At the time, the Government Speaker, the Minister of Interior was the one that offered an explanation managed to convince the EC that there will be no more clashes in the of the event. Speaker Veljanovski acts as if the matter in question is of Parliament as the new Parliament Law will provide for security service no concern of his. He failed to respond to the letter addressed to the within the Parliament. The Law was enacted in 2009 and Macedonia President of the Parliament from the Ministry of Internal Affairs (MIO), obtained EC’s recommendation. which by its style and contents resembles a political communication In our previous accession watch reports, we reiterated the need for that transcends power-sharing. He also failed to respond to the the enactment of the law in light of fulfilling the political dialogue summons for informative interrogation addressed to several MPs from benchmark45. The recent clash only proves that Macedonia is losing the the opposition, who were directly involved in the clash. It is difficult trust of the EC by promising things that we cannot deliver. Nevertheless, to understand why Mr. Veljanovski was silent for such a long time the Parliament approved the composition of the Inquiry Committee and and why he did not respond to the events that are direct attacks on the Parliament’s independence and integrity? Why did he allow the 44 2008 EC Progress Report for the Republic of Macedonia, November 2008, pg. 9. degradation of the Parliament, along with the public office Speaker? Is 45 See the First Quarterly Accession Watch Report “The Government Should Work 24/7 on Mr. Veljanovski aware of the price the Macedonian citizens will need to the EU Agenda”, April 2009, pg. 29 and the Second Quarterly Accession Watch Report pay because of his behaviour? The Parliament Speaker will have to offer “Macedonia Needs a New Prime Minister for European Integration”, July 2009, pg. 23.

21 Sixth quarterly Accession Watch report tasked it to investigate the case. It is of utmost importance for the support that impression even more. This raises the issue of whether current Inquiry Committee not to fail as the previous one. an agreement would have been reached at all if the obligations and deadlines set by Brussels were not pressing. Would the Parliamentary majority and the Parliamentary Speaker beg the opposition to return to 1.3. Opposition – Wrongdoer on Call Parliament and vote the amendments to the Rulebook?

Prior to the meeting of the Stabilization and Association Council Unfortunately, it seems that the majority is still unaware that (SAC), we expected to see the outcome of the Parliamentary drama the agreed package is an expression of honest intentions to build related to the unanimous adoption of the infamous Rulebook - which constructive political dialogue. Apparently, the opposition messed up was duly addressed in all our previous quarterly accession watch reports the Speaker’s plans, and now he will have to deliver the amendments to as part of the benchmark monitored. The 3-month deadline after the the Rulebook much later than the anticipated deadline. adoption of Parliament Law, as agreed between the ruling majority and The need to amend the Rulebook was also included in the conclusions the opposition in the Parliament, did not expire yesterday, but last of the 7th meeting of the Stabilization and Association Committee (SAC) November. The opposition tried to push the Rulebook on the agenda, that took place 3-4 June in Skopje, as another reminder of the obligation but to no avail. The demands for more authority in agenda-setting, its defined in the Review 2010. In the course of June, similar messages persistence to schedule the debate on “Skopje 2014” project, its request were sent by Stefan Fule, EU Commissioner for Enlargement, and by to consider the findings of the State Audit Office (hereinafter: SAO) Ambassador Fouere who was constantly reminding the authorities of reports, as well as the use of the institute “supervisory debates”, as the obligation. Following a long period of silence, and immediately anticipated by the Parliament Law, were assessed by the Parliamentary before Minister Milosevski’s meeting with Commissioner Fule scheduled majority as excessive, and even coercive, without even taking into for 29th June in Brussels, and less than a month before the meeting account the fact that the opposition is not, nor should it be, merely of the Stabilisation and Association Council46, the Parliament Speaker a decor in the Parliament and without even taking aboard the opinion Veljanovski announced the adoption of the amendments by 15th July from the Venice Commission, and thereby the EU. the latest. When finally the amendments to the Rulebook made the Parliament The adoption of the Rulebook is not late for days or months, but coordination meeting, the impression that the Parliamentary majority for years47, supporting the fact that the Macedonian parliamentary favours the opposition’s restricted participation in the Parliament work remains. The hustle surrounding the composition and mandate 46 The meeting was initially scheduled for 20.07.2010, but was postponed for 27.07.2010 st when it became probable that there will be no solution to the name dispute and Mac- of the Inquiry Committee tasked to investigate the events from 1 edonia will not be able to start accession negotiations together with Iceland. July and the parliamentary mechanism for supervising public spending 47 See document of the Government titled “Information on the Realisation of the Key

22 Analysis democracy works only after it has started to generate negative Committee and the Rulebook, were difficult and the with constant risk consequences. A Parliament without political dialogue and true debate of another coordination boycott. on sensitive topics that concern the public, or a Parliament that fails The boycott of the MPs from the Democratic Party of Albanians (DPA) to check-and-balance the executive power in compliance with the continues. It has been almost a year since they left the Parliament constitutional principle on power-sharing looks more like a political in August 2009. They turned the deaf ear to the several appeals of party gathering rather than a “temple of democracy”, as the Speaker the Speaker and even now they have no intention to return. Nothing likes to call it. In the pursuit of wrongdoers, the public was unnecessarily has happened in regards the opposition’s demand to take away the entangled in the debate on (non)accountability for implementing the five seats from DPA, in compliance with the Constitution, and on the EU-agenda and, obviously, fails to see the forest from the branches. grounds of unjustified absence from the Parliament for more than 6 months. Indeed, it seems that the Speaker Veljanovski has no intention 1.4. The Boycott Continues to the issue forward since he continues to record their absence as justified, although DPA publicly stated that its MPs have not submitted The several-month long discontinuation of regular consultations any justification for their absence. Obviously, the Speaker made it quite with the President of the Parliament will be indisputably reflected in clear that he will not initiate a procedure for retrieving their terms of the EC Progress Report in the part assessing the political dialogue. office, although he has the right and the obligation to do so. The rejection of the amendments of the opposition aimed to correct Just when we thought that after the Committee on Interethnic the draft auditing law, which repelled the Parliament’s competence to Relations, after many controversies and pressures, both internally and consider the audit reports and the financial statements of the Budget externally, solved the problem of securing the quorum that blocked of the Republic of Macedonia, was too much for the oppositional SDSM. its work for a longer period, practice proved us wrong. Quorum was Dissatisfied with the parliamentary majority’s lack of will to compromise, secured, but for short. Hence, in the second quarter of the year the SDSM decided to abandon the regular coordination meetings with the Committee held only two meetings: 10th session and first continuation President of the Parliament and the coordinators of other political of 8th session. The 6th, 7th, 8th, 9th and 10th session, which is scheduled parties. Nova Demokratija followed suit immediately after SDSM. The for 16th July 2010, remain unfinished. attempt to agree on the amended Rulebook restored the coordination meetings in the Parliament, but the negotiations, both on the Inquiry With such operational problems, the Committee is not producing the expected results. In a period of 20 months, since its establishment,

Priorities from the Accession Partnership”, September 2008, where one of the meas- the Committee scheduled only 11 sessions, 6 of which were completed, ures anticipated is to improve the political dialogue by intensifying consultations in but only 4 resulted in the adoption of specific conclusions. The quorum Parliament concerning the adoption of the new Parliamentary Rulebook – deadline: problem delayed the debate on some of the most essential topics March 2008; Indicator – The Rulebook adopted with consensus.

23 Sixth quarterly Accession Watch report related to the interethnic dialogue in the country that have been in the the conclusion is that no improvements have happened in the first half spotlight for quite some time, such as learning Macedonian language of the year. as a mandatory subject for Albanian first-graders, or the “Skopje According to its competences49, the Committee on European 2014” project. The debate on education was discussed on the first Issues (hereinafter: CEI) is one of the key parliamentary bodies in the continuation of the 8th session, which started with a record number European integration process, as well as the process of harmonisation of MPs attending, but was again discontinued due to lack of quorum. of legislation, but also the basic form of parliamentary control over In the meantime, one school year finished and the next will start. the work of the Government in European integration. Nevertheless, for The city is turned upside down with construction works and starts years now the Committee selectively chooses which legislative acts from to resemble the projected image of Skopje 2014. The appeals from the NPAA it will discuss, on the basis of unknown selection criteria, the international community reiterating that the main purpose of the and without justifying the reasons for such an approach. According to Committee is to foster and build interethnic relations in the spirit of Parliament statistics, in the period 2006-2009, the Parliament adopted the Ohrid Agreement had no effect either48. a total of 199 European-flagged laws, while the Committee discussed only 94 of them. In 2009, from the total of 57 European-flagged laws, 1.5. Parliamentary Committees in Action the Committee on European Issues discussed only 30, while in 2008 it discussed only 5 from the total of 19 European-flagged laws. The Parliament as the legislative arm is the representative of Such a practice continues this year as well. Notably, by 16th July the citizens that controls the work of the Government in all fields, 2010, the CEI scheduled a total of 15 meetings, including its 54th including European integration. Public opinion polls show that most of session. 35 European-flagged laws were discussed on these 15 sessions, the citizens support the country’s EU accession. Following this logic, which is an interesting figure compared to the 45 European-flagged the Parliament, as the representative of the citizens, should put this laws adopted by the Parliament altogether. Equally interesting is the priority and the citizens’ interest high on its agenda and promote fact that the Committee’s agenda also includes legislative acts that are European integration. The analysis of the Parliament however, shows not included in the NPAA, without clear explanation of reasons thereof. an exceptionally low level of action in several key segments of the The quality of the discussions of the CEI is also very important. In the European integration process. Using the official indicators from the period 2006-2009, according to the official Parliamentary sources, the Annual Report of the Parliament in 2009 as the primary source of data, Committee did not submit a single amendment to the laws discussed. 48 One of the measures for fulfulling the political dialogue benchmark, as given in the According to NPAA 2010 and the data from the “Information on Government’s Action Plan, was to reach a consensus in Parliament on issues related to the implementation of the Framework Agreement that resulted in the establish- ment of the Committee, “Information on the Realisation of the Key Priorities from the 49 See Fifth Quarterly Accession Watch Report “Who Needs a Parliament?”, April 2010, Accession Partnership”, September 2008. pg. 22. 24 Analysis the Realised Activities from the NPAA, 2010 Review for the period 1st 1.6. Parliament – the Biggest Non-governmental April – 30th June 2010” submitted to the Parliament and considered on Organisation the 54th session of the CEI that took place 16th June, the Government was supposed to draft and the Parliament to adopt a total of 106 laws. The Parliament of the Republic of Macedonia cooperates with civil According to the same source of information, the Parliament adopted society organizations, but this cooperation is neither institutionalized a total of 45 European-flagged legislative acts, while another 9 are nor regulated. There is no body or institution that would deepen the in parliamentary procedure by 30th June 2010. Yet, these figures were cooperation between civil society and the Parliament, so that civil assessed as satisfactory, both by the Government and the respective society organizations (hereinafter: CSO) would know in advance the Committee, as was the case with the previous document covering the issues put on the Parliament’s agenda and thereby be able to develop period 1st January- 31st March. and present their views, positions, briefs, guidelines, proposals, conclusions on issues of direct interests, nor is the Parliament able to To see the performance indicators better, we compared the data benefit from their recommendations and opinions. from the two documents. As a reminder, according to the Information of the Government, in the first quarter of the year the Parliament Apart from the institutional cooperation with the civic association adopted 33 laws, while 10 were in the parliamentary procedure. By “Most” established years ago, and the Macedonian Centre for comparing the figures, we can see that in the second quarter only 12 International Cooperation (hereinafter: MCIC) within the National laws were discussed or a total of 45 laws for the first half of the year. Council for European Integration (hereinafter: NCEI), the Parliament This means that 61 European-flagged laws remain to be adopted in the has left the cooperation with CSOs to the chairs of the parliamentary second half of the year. Obviously, the parliamentary majority needs to committees, who decide which CSOs will be invited to their meetings. always praise the Government, regardless of whether the indicator is Some committees are more prepared to cooperate with CSOs compared 33 or 12 laws adopted. to others, for example the Standing Committee on Protection of Human Rights and Freedoms, the Committee on Budget and Finances and a The Review 2010 is still not a matter of interest for the parliamentary handful of other committees prone to cooperate with professional majority, but also for the opposition. Hopefully, the MPs will show some associations. sign of interest before October, when it will be too late to fulfil the indicators specified by the EC in this extremely important document. In the course of May, as part of the events organized on the occasion of celebrating Europe Day, 9th May, the CEI participated in the activities organised by “Most”, which resulted in the adoption of 8 conclusions that deserve more attention. In addition to the expressed readiness to cooperate with civil society and the praise on the account

25 Sixth quarterly Accession Watch report of the Macedonian Women’s Lobby, the Inter-party Parliamentary Group As for conclusion No. 6, it clearly refers to our Quarterly Accession for Disabled Persons and the project “My Member of Parliament”, CEI Watch Reports53, contesting the figures contained therein, although stated that “dialogue between the civil society organisations themselves they are based on Parliament statistics. Does this mean that CEI deems is lacking”50, as well as that “CEI is prepared and open for cooperation Parliament statistics unreliable or that the reports that criticize the with civil society organisations in terms of information exchange as to work of the Government (and the Parliament) are biased? contribute to the objectivity and fact-based reports that CSOs develop Nevertheless, we welcome conclusion No. 7, that “supports the about the operation of the institutions in the Republic of Macedonia participation of civil society organisations in the working groups that regarding the European integration process”51. will be an integral part of the negotiation team of the Republic of These two conclusions show that the cooperation between CEI (read: Macedonia”, but it remains to be seen whether the Government will Parliament) and civil society organisations is somewhat problematic. take this recommendation into account. It is difficult to understand why the CEI requires dialogue between As for NCEI, the civil sector is represented by the Civic Platform CSOs themselves as a precondition for cooperation. Unclear is also of Macedonia (hereinafter: CPM) established in 2004 by 31 CSOs whether by “dialogue” CEI means CSOs speaking in one voice, thereby and financially supported from the CARDS Programme. CPM’s goal preventing different opinions on issues discussed (as is the case in was to become a forum where civil society organisations will create Parliament), or it means coalition-building around particular issues to coalitions, cooperate and act together in the pursuit of their interests. facilitate the Parliament’s cooperation with the citizens. The analysis Unfortunately, this goal was not achieved, as today CPM has only 14 of the events that took place prior to the adoption on the Law on members, while Mr. Aleksandar Krzalovski, CPM’s representative in the Protection and Prevention from Discrimination52, when the civil society NCEI, on the 11th meeting of NCEI dated 25th December 2009 admitted sector established a broad coalition and submitted a draft-law aligned that he did not represent the civil sector as a whole, but only CPM. with the recommendations from the Venice Commission, prove that CEI’s interpretation of “dialogue” means monologue of the majority, The events from the NCEI meeting from 25th December 2009 were which at that particular moment defended their political party interests addressed in our Fourth Quarterly Accession Watch Report54. At this rather than national interests. point, we would like to reiterate that the three partner organizations: Foundation Open Society Institute – Macedonia, NGO Info Centre and the Macedonian Centre for European Training, addressed a letter to

53 On the seminar organized by “Most”, MCET’s representative was directly confronted 50 Conclusion no. 4 of the Committee on European Issues, 15th June 2010. by Petar Pop-Arsov, who claimed that figures from our reports were incorrect even if 51 Conclusion no. 6 of the Committee on European Issues, 15th June 2010. they were provided by the Parliament. 52 For more information on the chronology of the law’s enactment, see Fifth Quarterly 54 See Fourth Quarterly Accession Watch Report “Is the Government Making a Momu- Accession Watch Report “Who Needs a Parliament?”, April 2010, pg. 39. ment out of EU?”, January 2010, pg. 16.

26 Analysis

NCEI, requesting permission to continue to monitor the work of NCEI another Inquiry Committee was established, but from the onset it is in 2010. Up to date, NCEI has not replied. From the information posted difficult to see whether it will produce any results at all, just like the on the Parliament’s website we know that NCEI apparently adopted a previous 14 Inquiry Committees established from the independence of conclusion on the participation of CSOs on its 14th meeting held on the state up to date. The parliamentary analysis and research services 26th April 2010, but the conclusion itself is not published. Obviously, remain weak, whereby depriving the Parliament of any serious capacity Mrs. Boneva, who replaces Radmila Sekerinska, is taking her time to monitor the European integration process. While the Government in informing us on NCEI’s decision taken. We wonder whether Mrs. controls the Parliament, the Parliament attempts to control the civil Boneva would have been less keen to ignore us if our reports were society, at least the part that dares to criticize the Government. For more favourable towards the work of the Government. In that context, Macedonia to demonstrate even modest results in the political dialogue we would like to stress that our reports on NCEI are quite positive, benchmark, the following recommendations must be implemented: except for the part referring to the employments that were part of the • The Parliament of the Republic of Macedonia must immediately benchmark and the Government’s Action Plan monitored. adopt the new Rulebook which will include the recommendations of the Venice Commission and develop mechanisms for cooperation 1.7. Conclusions and Recommendations with civil society organisations; • The Parliament must discuss the findings of the State Audit Office Time to fulfil the obligations from the EU agenda is ticking away and task the Government to implement the recommendations; and there are only 3 months left until the publication of the new EC Progress Report for the Republic of Macedonia. All three tasks defined • The Inquiry Committee of the Parliament must deliver results as in the Review 2010 on political dialogue are still not implemented, i.e., soon as possible and sanction the persons who violated the law and the Rulebook is not adopted, let alone implemented; the recent clash abused their authority; in the Parliament demonstrated that the Parliament Law is not enforced • The vacancies of the parliamentary administrative services must properly and that the vacancies in the parliamentary administrative be recruited, including the security service and the Parliamentary service (in particular, the security services) have not recruited, while Institute; the Parliamentary Institute is still not fully operational. This, in • The Parliament of the Republic of Macedonia must be more open and conjunction with the clash in the Parliament from 1st July, indicates allow consultations with stakeholders in the process of adopting that the Parliament hit rock bottom, while the political dialogue in the legislation. country practically does not exist. Irrelevant motions to censure are still going on, the most recent being those of the Parliamentary Speaker Veljanovski and of the Minister of Interior, Gordana Jankulovska. Yet

27 Sixth quarterly Accession Watch report

2. POPULISM IN THE JUDICIARY Macedonian judiciary and to strengthen its independence by excluding the Minister of Justice from the Judicial Council and increasing the The Accession Partnership anticipates two short-term priorities number of Council members from the line of judges. for the judiciary, while the Review 2010 defines the indicators for monitoring the progress. Notably, Macedonia must implement reforms Presented in a hurry and out of the blue, not by the Prime Minister or in the judiciary and the prosecution and strengthen their independence, the Minister of Justice, but by the Minister of Foreign Affairs, Antonio efficiency and capacity. The EC will want to see a “system for sustainable Miloseski, and without prior consultations between the political parties, strategic planning of human resources at the Judicial Council and the it was clear that the initiative would raise tensions and appetites of Council of Public Prosecutors, as well as strengthened transparency and political parties and trigger an avalanche of demands. It seems that successful track record of the implementation of the merit-based system that was the exact outcome the Prime Minister was expecting. Thus, for recruiting judges and public prosecutors, improved budget planning suddenly, and as quickly as it was presented, the initiative only after and sustainable budget framework“55. two meetings between the political party leaders failed to secure an agreement and after the several meetings of the working groups, the The second priority concerns the operationalization of newly Prime Minister announced that the constitutional amendments will not established judicial institutions aimed to increase their efficiency, while see the light of day. progress will be assessed against the following indicators “track record of activities of the Administrative Court and implementation of legal While testing the level of preparedness of other political actors in mechanisms regarding the right to appeal in administrative disputes, as the country to contribute to a more independent judiciary, and trying, well as full enforcement of court decisions and improved cooperation with yet again, to express constructiveness, the doubts in the honest the Public Attorney”56. Whether the Macedonian Government delivers intention of the ruling party proved to be true. The Prime Minister, the expected judiciary reforms is a completely different story. most probably, believed that the sole concept and the fact that it was put on the table for discussion at as many as two meetings of political party leaders would suffice to demonstrate the constructiveness of 2.1. Constitutional Amendments a Bluff VMRO-DPMNE to create a judiciary that will be free of the influence of the executive power. And again, the Prime Minister thought that The initiative for constitutional amendments was doomed to fail matters can be resolved if he just pointed his finger at someone else. If from the very beginning. The retrospective of events related to the in 2005, when VMRO-DPMNE was the opposition, the attempt to amend constitutional amendments only confirmed the doubts concerning the the Constitution failed57, then one must ask the question whose fault honest intentions of VMRO-DPMNE to renounce its control over the

55 See Review to the Accession Partnership, 5th February 2010, pg. 3. 57 When it had less MPs in the Parliament from the current number of MPs from the ruling 56 Ibid. VMRO-DPMNE.

28 Analysis is it this time and why didn’t the “old-new” VMRO-DPMNE initiative58 its liking. The person appointed has not worked in the judiciary at all. pass? Does that mean that Prime Minister Gruevski is a weak leader who Nevertheless, the parliamentary majority favoured him, and thought of fails to push through his ideas both as the leader of the opposition him as sufficiently professional and qualified to be included among those and as the leader of the ruling party, or was this just another bluff, who appoint and dismiss judges in Macedonia, by assessing their work which unfortunately demonstrated the will of VMRO-DPMNE to create and performance. an independent judiciary. On the other side, in this period the adoption of the new Law on An argument supporting this thesis is the fact that the Prime the Academy for Training Judges and Public Prosecutors was adopted, Minister, unofficially, acknowledged that the aim of the initiative which stipulated stricter criteria for Academy admission compared to the was to correct “the impression of the international community that criteria applied to the selection of Judicial Council members (hereinafter: the judiciary is influenced by political and other power centres”59. That Academy), and included an utterly controversial “test of integrity”. way, Gruevski sent a clear message that the proposal for constitutional According to the respective law, as of 2012, only the candidates with an amendments as regards the composition of the Judicial Council should average university achievement of 8.00 and higher and those who will not be interpreted as some kind of admission that the current state of present an internationally recognized certificate for English language affairs is unsustainable, nor as facing the fact that the interference with credits as stipulated by the law can be admitted to the Academy. We of the executive power in the judiciary is excessive, which would understand and support the effort to make the judiciary highly qualified, have explained the serious tone of the ruling party revisiting its although this selection method was criticized by the expert public and old commitment after 4 years (from the 2005 attempt to amend the continues to raise concerns. This is also interesting in terms of the current Constitution). admission criteria for the Academy, as they include sound knowledge of English language. The questions that the candidates answer60 however -which remain in effect until 2012 - are far below the level required 2.2. Appointments and Dismissals – Mainly Partisan from 2012 onwards. The question is why? If analyses show that better knowledge of English language among judges is needed, then why isn’t Another example of the attitude of VMRO-DPMNE towards an this criterion raised now to the level anticipated for 2012? Does that independent judiciary is the fact that while it chaired the group mean that until 2012 the judiciary will continue admitting political party tasked with constitutional amendments, the parliamentary majority soldiers and followers? This inevitably returns us to the previous topic of VMRO-DPMNE appointed another member to the Judicial Council to – the qualifications of the Judicial Council members. It is only logical 58 The Prime Minister claimed that the proposed constitutional amendments are an for those that assess the work and performance of highly qualified and “old-new” commitment of VMRO-DPMNE dating back from the last constitutional experienced judges to also be professional, qualified and experienced. amendments in 2005. 59 “Politicians to Remove Politics from the Judiciary”, Dnevnik. 60 The questions are available on the Academy’s website.

29 Sixth quarterly Accession Watch report

2.3. Judge, Jury and Executor to the Constitutional Court, the respective Rulebooks were adopted outside of the framework of the Law on the Judicial Council and other The issues related to the qualifications of Judicial Council members relevant laws. This raises the dilemma whether the Judicial Council is are particularly important knowing that on the occasion of inquiries illegally dismissing judges. Some of the contested provisions were key to determine the accountability of five judges from Skopje in the case for the dismissal of both judges from the Appeals Court in Skopje. That concerning the double identity of a Turkish national, the Judicial Council was the second case when the entire judge council was held responsible. turned into a court-room. As a reminder, it all started with the initiative Interestingly enough, the first judge council held accountable was the raised by the Minister of Justice, as a member of the Judicial Council, one involved in the “Bacilo” case which remains unresolved61. to dismiss one of the most prominent judges in the Skopje Appeals Court on the grounds of alleged complaints from citizens. Later the President of the Judicial Council extended the procedure and included 2.4. Where are the Academy Candidates? all members of the judge council involved in the respective criminal Concurrently with the abovementioned events that continue the lawsuit. This was followed up with a nine-hour hearing and cross- series of scandalous and controversial appointments and dismissals examination of the five judges from the Council, behind closed doors in the judiciary, the Academy for Judges and Public Prosecutors was (despite the request of four judges to publicly open the procedure). admitting the fourth generation of candidates. As noted in the previous The examination and information-gathering from witnesses lasted for Accession Watch Reports, this generation consists of only 9 candidates, almost six hours. While prominent legal professionals questioned the which is extremely below the number of candidates from the previous accountability of the judges, and the entire procedure as a matter generations. Obviously, the Macedonian judiciary is becoming too of fact, this unusual and contradictory case was resolved with the unattainable for the Academy candidates thanks to the recruitment of dismissal of two judges from the criminal council - the presiding judge judges that took place just days before the first generation of candidates and the rapporteur judge. graduated. This goes hand-in-hand with the filling in of vacancies at the In the midst of the drama, the Appeals Court in Skopje made efforts basic courts, mostly with people that were not on the list of candidates to keep up with the work and maintain efficiency with half of the from the Academy, although the law stipulates that 50% of the judges human resources required, thus operating with only four criminal judges appointed should be from the Academy candidates. The country was from the total of nine. To make things worse, one month after the publicly reprimanded for such practice last year. Nevertheless, it seems dismissal of the two appeal judges, the Constitutional Court initiated that instead of graduated candidates from the Academy, the country a procedure to re-examine the two Rulebooks adopted by the Judicial will continue to prefer other “appropriate” candidates for judge and Council (Rulebook on Disciplinary Proceedings and Rulebook on Non- 61 Professional and Unconscientious Performance of Judges). According Mainly due to the fact that one of the judges fulfilled the conditions for retirement and the other moved to the Constitutional Court.

30 Analysis prosecution offices. This year62, a total of 28 judges were appointed to In the previous Quarterly Accession Watch Report, we analysed the basic courts, only 8 of which were from the Academy candidates. the total budget of the judiciary and the budget accounts63. To that Otherwise, two candidates from the Academy’s first generation are still end, it is obvious that the Government, with its improvident spending, waiting appointment, while 25 candidates are already in the judiciary instead of decreasing the debts in the judiciary, only contributes and the Public Prosecution. Concerning the status of the second thereto, thus also increasing the debts of the State. Bearing in mind generation of candidates, 10 candidates have been appointed, and 17 that this year the EC will require better budget-planning and sustainable are still waiting for their appointment. budgetary framework64, it becomes clear that results will come short. The events and situation described demonstrate what Macedonia - for the time being - is unfortunately delivering as regards the priorities 2.6. Court Administration Remains Utopia from the Accession Partnership. The Judicial Council published its Annual Report for last year and submitted it to the Parliament of the Republic of Macedonia for 2.5. Judiciary, Independence and Budget consideration. In conditions when 696 judge positions65 are anticipated and when the recruitment rate on 31.12.2009 accounts for 93%, or In its pompous and highly optimistic style, the Government, over 648 judges, the Judicial Council recommends more analyses on human and over again, announced the final resolution of the judiciary’s resource in the judiciary: “analysis to determine the criteria on the independent budget. The Government failed to implement the idea of a number of employees at courts, in compliance with the Law on Courts, judiciary budget as a share of GDP, which was supposed to contribute as well as needs assessment and analysis of criteria to determine the to the efforts of eliminating the interference of the executive power in number of judges (possible increase or decrease), on the basis of the judiciary, notably by reducing budget dependency. The impression which the actual status of court workload and judge workload would be created this time was that the Government is determined enough to determined”66. This published statement coincides with the expansion make a step forward. Considering the situation of the general budget however, it is unlikely that these efforts will become a reality. In the 63 See Fifth Quarterly Accession Watch Report “Who Needs a Parliament?”, April 2010, meantime, the judiciary took another blow with the saving measures pg. 27. of the Government, and there are unofficial talks that the accounts of 64 Review to the Accession Partnership, 5th February 2010, pg. 3. some courts are frozen. 65 According to the Report of the Judicial Council, in 2009 a total of 661 judge positions were recruited. On 31.12.2009, the judicial administration had 2,288 employees (without judges and Judicial Council members). 66 The Macedonian Centre on European Training continuously indicates the need for such 62 According to the information available on the Judicial Council’s website, including the an analysis in its reports (see, for example, the First Quarterly Accession Watch Report 90th session held on 1st July 2010. in 2009).

31 Sixth quarterly Accession Watch report of judge positions in the county made in the Judicial Council’s report, The problem with lack of expert and administrative staff was made but without the necessary analyses to support such a demand. worse with the adoption of the Decision of the Government of the Republic of Macedonia to freeze public sector employments in 2009, The content of the Judicial Council’s Report was subject of with the exception of the employments stipulated by the NPAA and the analysis in the previous quarterly accession watch report67. The human Framework Agreement. Consequently, the judicial units did not recruit resources needs in the judiciary were also addressed in the Report in 2009, even for the permanent vacancies (on the grounds of pension, of the Judicial Budget Council for 2009. stating that “there is lack termination of employment, appointment as judge or prosecutor, of judicial staff, there is no expert and administrative staff, which is etc.), including working posts that are necessary and important for necessary to support the work of judges (associates, typists, department day-to-day operation (associates, IT staff, etc.). This situation was heads, couriers, etc.), as well as lack of expert staff in the field of mitigated to a certain extent, with recruitments made in compliance public relations, human resource management, internal financial audit, with 2009 NPAA and by means of temporary employments. In 2009, strategic planning, etc.“. In that context, the report indicates “the issue the Ministry of Finance approved funds for 60 temporary employments. of insufficient IT staff at courts, because although efforts were made to Obviously, the absence of analyses, not merely in regard to judiciary employ at least one IT person per court, nevertheless…. for example, the staff, is becoming acute. Sound strategies cannot be developed without Basic Court Skopje 1 in Skopje, the Basic Court Skopje 2 in Skopje (with analyses. Unfortunately, the criteria according to which we judge the more than 310 employees) dispose with only two IT persons, although value of a public policy are not very clear. While the number of judges the standards stipulate one IT person employed per 40 computers”. is increasing and scandalous temporary recruitments do not bypass the Further on, the Report presents a detailed analysis and indicates judiciary, the court administration is a utopia. that “the enforcement of the Law on Court Administration and after the Judicial Council adopted the rulebooks on the organization and job positions at all courts, it seems that from the anticipated 3,710 2.7. No Transfers Because of the Global working posts in the court administration 2,264 have been recruited, Economic Crisis i.e., 61.02%”. Also, it determined the average number of employees per judge which accounts for 3.49, or 2.96 expert and administrative Although full implementation of the Execution Law was expected, employees (those in direct service to judges). The need for an analysis a last minute decision was made to postpone its enforcement - for aimed to determine the criteria on the number of employees at courts the second time. In the final stage, the courts were to be unloaded in compliance with Article 107 of the Law on Courts is obvious. from nearly half a million execution cases that were to be transferred to the notaries and the bailiffs. Interestingly enough, this delay was not due to unpreparedness, but – as explained by the Prime Minister 67 See Fifth Quarterly Accession Watch Repot titled “Who Needs a Parliament?” April 2010, pg. 27. himself – due to the global economic crisis. The justification behind

32 Analysis the delay was that “the poor citizens could not endure the additional Court resolved a total of 7,857 cases, while the remaining 10,340 costs of paying old debts”. Everything would have been just dandy if remain unresolved until the end of the year. According to the same the Government had explained its plan to protect those same citizens information source, in the first five months of 2010, additional 2,890 in one year’s time when the law will have to be enforced and the cases administrative disputes were resolved. transferred, and when the citizens will have to pay the debts and the Based on this statistics and the fact that in 2009 additional three arrears, plus the interest accumulated in the meantime. judges were appointed to the Administrative Court, which now disposes According to the figures published by Utrinski Vesnik68, 300,000 with 25 judges69, it can be concluded that each judge resolves around 2 from the total number of 489,000 execution cases are at the Basic disputes per day. Such results become understandable considering that, Court Skopje II. This court traditionally ends the year with a major according to the information from the 2009 Report of the Administrative backlog, and now with the delay, the court will not be able to improve Court70, in the given year the Court employed only 13 management and its efficiency and it will still need to deal with debt collection instead expert staff that assisted the judges in their work. In the same report, of performing core judicial duties. the Administrative Court emphasizes that “for the purpose of achieving full operation and fulfil the purpose for which the court was established, Obviously, such an extremely populist measure became more it is necessary to secure funds and update the recruitment procedure important than completing the reform of the execution system. Both for court associates and other employees at the court administration, the reform process and the Basic Court Skopje II will have to wait for having in mind that the current number of employees does not suffice better times. Unfortunately, the EC (as well as Macedonia) will also to efficiently deal with the scope of activities falling under the Court’s wait, since the reform implementation process as regards the execution jurisdiction, moreover knowing that pursuant to Article 101, paragraph 1 of court rulings will not be completed this year. of the Law on Courts each judge should be appointed at least one court associate.“ 2.8. Administration Court Track Record Indicators show that the results achieved remain under the optimal level. Therefore, it is clear that - for the time being - the Administrative This year, as the EC will closely monitor the work of the Administrative Court project is underachieving in terms of the purpose for which it was Court, we decided to analyse this court and its operation in our Quarterly established. Current dynamics and effectiveness of the Administrative Accession Watch Report. Our first effort was to make an attempt and Court makes the acceleration of administrative disputes’ resolution quantify its work. Following our FOI applications, the Administrative Court informed us that in 2009 it had a total of 18,197 cases, 9043 of 69 Including the President, and hence one judge post is empty due to the appointment which were submitted in 2009. In the same year, the Administrative of the judge as member of the Judicial Council. 70 http://www.usskopje.mk/cms/FCKEditor_Upload/File/Godi{en%20izve{taj%20 68 Notaries and Bailiffs Will Collect Unsettled Bills, 1st June 2010. za%202009%20godina.doc

33 Sixth quarterly Accession Watch report disputable. Equally disputable is whether this solution would prove are a completely different story. Examples of such behaviour are to be successful in terms of unburdening the Supreme Court from numerous, but we will mention just one. After the Constitutional Court administrative cases related to appeals against the decisions taken by decided to cancel part of the urban plan for the “Small Ring” in Skopje, the Administrative Court, as it is a quasi-solution that was to temporarily whereby making certain construction works from “Skopje 2014” project resolve the problem that emerged with the right to appeal against the disputable, the construction works on these facilities were supposed to decisions taken by the Administrative Court due to the existing legal stop until further notice. Although promised to respect the decision of gaps. The record of the Administrative Court also includes the fact that the Constitutional Court, the Government and the Municipality Centar for a year – until its establishment, which was late, the Supreme Court decided to continue the works on “Skopje 2014”. Apparently, more – due to the legal vacuum – did not act in administrative disputes. acceptable for the Government is simply ignoring the decision of the All these create a bad perception and undermine the success of the Constitutional Court, but for the public, such behaviour is nothing less Administrative Court. For the time being, it seems that the narrow than alternative methods to undermine the constitutional judiciary and specialization of judges is the single benefit thereof. yet another reason for unfavourable comments from the EC.

2.9. The Government and the Constitutional Court 2.10. Conclusions and Recommendations Wrestling Regardless of who is to blame, the attempt to amend the Constitution In the reporting period, the relations between the Constitutional failed. The executive power continues to influence the judiciary by using Court and the Government acquired a different quality and entered into different forms and methods. Scandalous appointments and dismissals a new stage. Harsh rhetoric and sticking labels is no longer the main follow one another, while the judiciary still lacks funds and is fully feature of mutual exchanges. Instead, the Government is now giving dependant on the government. Reform-introduced novelties seem to statements of the type “We will respect the decision of the Constitutional fail to provide their optimum. Almost certainly, this year’s EC Progress Court”, but the messages are almost always followed by a subtext such Report will contain many comments on the account of the judiciary. as “although we disagree with it”. Frequent are also the lectures that Considering the current situation in the judiciary, if Macedonia truly specify in further detail the places “where the Constitutional Court went wants to change the impression and thereby build an independent wrong”. judiciary worth respecting, efforts and honest intentions need to be invested in the forthcoming period. The recommendations listed in The hypocrisy of such developments is particularly important, the previous Quarterly Accession Watch Report are still valid, and are as in practice we witness the Government’s declarations to respect hereby complemented with the following: the decision of the Constitutional Court, but the actions undertaken

34 Analysis

• To renounce all influence from the executive power over the 3. DIRE PRISONS judiciary, irrespective of whether it is a matter of appointments The 2008 Accession Partnership includes a short-term priority or recruitments, or even influencing the composition of the that should have been fulfilled by the end of 2009: “fully comply Judicial Council when taking disciplinary actions against with the European Convention on Human Rights, the recommendations judges in specific cases or by controlling the finances of the made by the Committee for the Prevention of Torture... and provide judiciary; sufficient resources to bring prison conditions up to a higher standard”. • To overcome staff-related problems at courts that undermine Unfortunately, this priority was not fulfilled and thereby the EC, in the efforts to achieve more efficient judiciary, by developing a its Progress Report 2009, stated that “additional efforts are needed to long-term strategy on the basis of an analysis that would lead address the dire state of some prisons, notably Idrizovo, where inhuman to results instead of ad hoc solutions; and degrading conditions persist. Overcrowding remains a major problem. The healthcare system in prisons is inadequate”71. • To implement Article 101, Paragraph 1 of the Law on Courts consistently, according to which each judge should be appointed at least one legal expert; 3.1. Res, non verba! • To implement the reforms without unjustified delays (for example, full implementation of the Execution Law); Maybe the key reason for the failure to improve conditions in the prisons is the fact that the state promises much, but implements • To mobilize all resources to achieve greater functionality and much less. Regretfully, this was also noted by the Council of Europe’s efficiency of the institutions established as part of judicial Committee for the Prevention of Torture (hereinafter: CPT). During reforms; its regular visits in May 2006, CPT identified the three main areas of • To respect the institutions of the system consistently; and great concern, those being: 1) ill-treatment of detained persons; 2) inefficient investigations into alleged ill-treatment; and 3) squalid living • To demonstrate rule of law and democracy where the conditions in the prisons visited72. The Government’s response did not institutions of the system function properly. address most of the remarks put forward, in particular those related to the prisons, which resulted in CPT taking a decision to make another ad hoc visit in October 2007. Again, in its 2007 Report, CPT expressed its

71 2009 EC Progress Report for the Republic of Macedonia, pg. 14. For more details, visit http://www.sep.gov.mk/content/Dokumenti/MK/EK_izvestaj_2009_mk.pdf 72 For more details, see 2006 CPT Report, available at: http://www.cpt.coe.int/ documents/mkd/2008-05-inf-eng.htm

35 Sixth quarterly Accession Watch report serious concern on the lack of specific measures aimed to improve the document titled Penitentiary System Reform77, published in March 2009, conditions for detained persons and related to the recommendations includes two components, those being: 1) improving the accommodation made in the previous report. To be more specific, CPT concluded that capacities for inmates, detainees and juveniles, as well as improving the Ministry of Justice and the Prison Administration discontinued their the working conditions for the staff at penitentiary institutions; and cooperation with the Committee “as it seems there were no measures 2) building and developing human resource capacities at penitentiary undertaken to improve the dire conditions in the prisons”73. and correctional institutions. Nevertheless, the priorities listed in these documents are far from accomplished. As a result of the Government’s The response of the Government of the Republic of Macedonia continuous shortfall to address particular fundamental shortcomings to the October 2007 visit report again failed to provide answers to in the treatment and conditions of detainees, CPT had to reiterate yet the numerous reasons for concern, as identified by the Committee. again that “it values acts more than plans, as the inmates are currently Therefore, CPT made another special visit to Macedonia in the period kept under utterly unacceptable living conditions”. 30 June - 3 July 200874 aimed to examine the steps taken by the Government to follow-up on the recommendations made after its May 2006 and October 2007 visits. Nevertheless, during the 2008 visit, the 3.2. Macedonia in Wonderland delegation again determined that some of the information provided by the Government to the Committee in response to October 2007 Miracles are needed for the Republic of Macedonia to obtain a report was unreliable. Consequently, CPT noted: ”regretfully, there are positive assessment in the Progress Report 2010. Notably, the EC but few visible improvements made at prisons in 2008, and in general, demands full compliance with the European Convention on Human the situation continues to deteriorate“75. Rights and follow-up on the recommendations made by the CPT. Improving treatment and accommodation conditions of inmates Thus, the Accession Partnership 2008 sets two short-term priorities, at penitentiary institutions was one of the priority objectives of the those being: 1) follow-up on the recommendations made by the CPT Ministry of Justice in its Strategic Plan 2008-201076. Moreover, the and 2) provide sufficient resources to bring prison conditions up to a higher standard. The Review 2010 determines the indicators against which the progress achieved will be monitored, those being: 1) ensure 73 2007 CPT Report, available at: http://www.mfa.gov.mk//Upload%5CContentManagem appropriate strategic planning and a prison management system; 2) ent%5CFiles%5C2008-22-inf-mkd.pdf ensure merit-based system in the selection and appointment of prison 74 2008 CPT Report, available at: http://www.cpt.coe.int/documents/mkd/2008-31-inf- staff and management in compliance with the legal provisions; 3) ensure mkd.pdf) efficient resources to bring prison conditions to higher standards; 4) 75 Ibid. 76 Strategic Plan 2008-2010, Ministry of Justice, pg. 9 priorities and goals, available at: http://www.justice.gov.mk/documents/Stratesko_Planiranje.pdf 77 More information available at: http://www.justice.gov.mk/documents/reforma.pdf

36 Analysis ensure appropriate balance between short-term and long-term strategic 3.3. Virtual Investments planning; and 5) resolve the issue of overcrowded prisons and health care in prisons. Most activities implemented are related to the third indicator – improving prison conditions82. Prior to the analysis of the investments The first, second and fourth indicator are not fulfilled, and there made to prison facilities, it should be noted that if the prisons are are no activities initiated to implement them. There is no system on to fulfil their purpose, i.e., provide security and rehabilitation, the continuous education for prison employees that was to contribute to the Government must assume a comprehensive approach to the various introduction of carrier advancement system in the penitentiary either. aspects of operation and management of contemporary penitentiary Although the training centre78 was to be established in January 2006, systems, otherwise investing in prison property will not result in four years later it is still not there, as noted by the Ombudsman79. More improved treatment of inmates and improved working conditions for concerning is the fact that the Government abandoned the initially prison staff. Therefore, CPT stressed “having a clearly mapped strategic promoted concept on human resource education - the establishment of plan for the penitentiary system with defined, recognizable goals and the Continuous Education Centre80 - with the adoption of amendments realistic timeframe is essential”. to the Law on Execution of Sanctions in April 201081. Thus, prison staff training - despite the adopted governmental programmes - remains In addition to the investments in prison infrastructure secured fragmented, inconsistent, project-based and donor-dependant. It should from foreign donations, every year the Government adopts annual be noted that capacity building and advancement at penitentiary and financial plans targeting construction, reconstruction, maintenance correctional institutions is the second reform segment reiterated by and equipment for penitentiary institutions, in compliance with the CPT. Law on Execution of Sanctions from 2006. According to the 2007 programme83, a total investment of 71,180,000 MKD was anticipated and secured from the Budget of the Republic of Macedonia. 90% of the funds were allocated for craftsmanship and

78 In compliance with Article 67 of the Law on Execution of Sanctions. construction works at the prison in Kumanovo, which is still not 84 79 In its report, Information on the Situation Related to Human Rights Respect and operational. The 2008 programme included more ambitious plans: Protection of Inmates and Detainees, September 2009, available at: http://www. investment activities in the amount of 54,000,000 MKD from the Budget ombudsman.mk/default.aspx?cId=132&Lan=MK 82 80 Which, inter alia, is part of the VMRO-DPMNE’s “Rebirth in 100 Steps: Upgraded More information available in “Implementation of Penitentiary Reforms”, report of and Expanded”, pg. 134, available at: http://www.vmro-dpmne.org.mk/Dokumenti/ the Ministry of Justice, February 2010, available at: http://www.justice.gov.mk/ Programa%202008-2012.pdf documents/Dosega%20realizirano.pdf 83 81 Published in the “Official Gazette of the Republic of Macedonia” No. 57/2010 from Published in “Official Gazette of the Republic of Macedonia” No.38/2007 26.04.2010. 84 Published in “Official Gazette of the Republic of Macedonia” No.41/2008

37 Sixth quarterly Accession Watch report of the Republic of Macedonia and 150,000,000 MKD to be secured the investment projects from previous years were nothing more than with a loan from the Council of Europe Development Bank. The central a copy-paste exercise of the Government. Moreover, the State Audit budget investments were earmarked only for the prison in Kumanovo, Office report on the 2008 financial reports of the Directorate for and a portion for project designs and urban plans for reconstruction of Execution of Sanctions88 identifies a series of inconsistencies ranging other prisons, which were supposed to be refurbished with a loan that from prolonged deadlines, major discrepancies between implemented was not secured85. and planned works, all the way to non-implementation of most activities and inappropriate supervision. Therefore, it really isn’t very This obviously didn’t discouraged the Government, hence in the surprising that the prison building is still not operational, although it 2009 programme86, it announced central budget investments in the was supposed to be completed in a period of 6 months. amount of 60,000,000 MKD and re-announced, again, the loan from the Council of Europe Development Bank, now in the amount of Infrastructure improvements were to contribute to the implementation 181,569,000 MKD. As before, the central budget funds were intended of the fifth indicator – resolving the issue of overcrowded prisons. for the reconstruction of the Kumanovo prison and for project designs Unfortunately, this will raise concerns in the future as well. For example, of other prisons, while their reconstruction was supposed to be funded the Ombudsman stated “at all times, the prison in Idrizovo has more than with the loan, which was again not secured in 2009. In its 2010 30% inmates more that the accommodation capacity available. Notably, programme87, the Government anticipated investments in the amount of according to its accommodation capacity, the institution disposes with 79,100,000 MKD from the central budget of the Republic of Macedonia, 950 beds, but this prison continuously accommodates more than 1,300 while the remaining 114,615,000 MKD were – finally – secured with the inmates”. loan from the Council of Europe Development Bank in May 2010. Finally, quite distressing is the fact that the Review 2010 failed to Securing the loan is the good news, but the fact that budget take into account the key remarks from the progress reports and CPT, allocation were not used efficiently, timely and appropriately is the as it does not anticipate measures aimed to sanction ill-treatment of bad news. As can be seen from the programmes on construction, detainees89 and establish an efficient investigation system on alleged reconstruction, maintenance and equipment of penitentiary institutions, ill-treatment. This means that Macedonia will continue to ignore international standards and fail to take activities to fulfil commitments 85 It is interesting to note that the Government defined the number of expert instruction assumed from ratified international treaties that guarantee human supervisions at the penitentiary institutions as one of the output indicators, rights, including the human rights of detainees. anticipating 22, but implementing only 8 supervisions. For more information, see 2008 Budget of the Republic of Macedonia, pg. 53, available at: http://www.finance. gov.mk/files/rebalans_2008_za_objavuvanje.pdf 88 Published in February 2010, available at: http://www.dzr.gov.mk/Uploads/2008_ 86 Published in “Official Gazette of the Republic of Macedonia” No. 3/2009 Uprava_za_izvrsuvanje_sankcii.pdf 87 Published in “Official Gazette of the Republic of Macedonia” No. 20/2010 89 2009 EC Progress Report for the Republic of Macedonia, pg. 14.

38 Analysis

3.4. Conclusions and Recommendations In order to overcome this situation and for the Republic of Macedonia to obtain a positive Progress Report in 2010, the Government should It seems that the remarks made by the European Commission, the implement the following recommendations: Committee for the Prevention of Torture at the Council of Europe, 1. To immediately develop measures and activities in response to the US State Department, and even national organizations such as the serious remarks made by CPT; the Helsinki Committee, coalition “All for Fair Trials”, Human Rights Institute, etc., do not reach the Government of the Republic of 2. To establish a system on continuous training and carrier Macedonia. The findings presented in the Ombudsman’s report also fail advancement for penitentiary institutions’ staff; to urge the Government to implement real, rather than virtual, reforms 3. To eliminate political interference in management in the penitentiary system. At this point, we would like to stress the appointments; findings presented by the Ombudsman in its Report from September 2009: “at most penitentiary institutions, inmates serve their sentences 4. To provide adherent enforcement of standards and conditions in inappropriate hygiene conditions, poor and substandard quality and for inmate accommodation and work; quantity of food, and lack sufficient recreational activities. The right to 5. To immediately establish an efficient and independent work is not secured by all penitentiary institutions, while the inmates investigation system for allegations on degradable and ill- who are working are not regularly paid for the work done, nor are they treatment of inmates; given funds for maintaining personal hygiene. Working equipment and 6. To develop and implement programmes aimed to advance conditions are below human dignity and at the same time deviate from inmate and detainee rights, in particular as regards their the minimum standards required. Moreover, inmates are not health access to justice, health care, education, work and family insurance beneficiaries, although this is a legal obligation. There is no contacts. organization and implementation of education, vocational education and training activities for the inmates, although primary education courses are available at the prison Idrizovo. Particular concerns are raised as regards the increased number of juvenile inmates who are illiterate. Finally, the Republic of Macedonia does not provide pre-release treatment of inmates, although this is a legally stipulated obligation”90.

90 The Ombudsman, Information on the situation related to the human rights respect and protection of inmates and detainees, September 2009.

39 Sixth quarterly Accession Watch report

4. ODYSSEY 2010 CONTINUES the public that the law was “European”92. To determine whether it is a matter of political decision to pursue VMRO-DPMNE’s conservative The Accession Partnership91 identified the anti-discrimination positions, even if that means not meeting the European standards, policy as one of the short-term priorities to be fulfilled by the end of or a matter of notorious ignorance as regards the subject matter, we 2008. According to the Accession Partnership, Macedonia was required decided to submit a freedom of information (FOI) application to the “to set up effective mechanism to identify, pursue and penalize all forms Legislative Secretariat asking for its opinion on the draft-law, which of discrimination by state and non-state bodies against individuals must be taken in due consideration by the legislator. or groups”. The last Quarterly Accession Watch Report analysed the process of adoption of the Law on Prevention and Protection from In its first response, the Legislative Secretariat tried to avoid Discrimination, with special emphasis on the shortcomings of the the answer by making reference to the line ministry that requested process such as its non-inclusiveness and non-alignment with the its opinion on the law, and replied with a list of its competences. European standards. Hence, the letter from the Secretariat taught us that ”the Legislative Secretariat performs matters related to securing consistency of the legal This process becomes more problematic in the context of the system and provides expert opinions on the alignment of draft-laws 2010 Review. Notably, the Review from 5th February 2010 defined and regulations with the Constitution of the Republic of Macedonia, the indicators against which the progress made in this field will be the EU acquis and the international treaties ratified pursuant to the monitored, those being: 1) adopt an anti-discrimination law in line Constitution of the Republic of Macedonia and provides expert opinions with the acquis and start its implementation; and 2) establish and on municipal regulations, upon the request from the Ministry of Local make operational mechanisms for monitoring, identifying, enforcing and Self-Government”93. sanctioning acts of discrimination on the grounds of race and ethnicity, religion and culture, disability, age and sexual orientation. After our appeal was approved, the Legislative Secretariat was asked to respond to our FOI application and submit the opinion it had already drafted for the line ministry. This time the Legislative 4.1. VMRO-DPMNE’s Democratic Dictatorship Secretariat clearly indicated that “as regards the compliance tables (on the alignment with the EU acquis), we would like to draw your During the law enactment procedure, the public debated whether the law meets European standards. The governmental representatives 92 Except for DOM, whose leader sustained the position that the Macedonian public is and the MPs from the ruling party sustained in their effort to persuade not mature yet for the adoption of an inclusive Law on Prevention and Protection from Discrimination, and thereby certain positions should not be imposed. 93 Referring to Article 40, Paragraph 2 of the Law on the Government of the Republic of Macedonia, published in “Official Gazette of the Republic of Macedonia” No. 59/2000, 91 Accession Partnership with the Republic of Macedonia, 18th February 2008, pg.6. 12/2003, 55/2005, 37/2006, 115/2007, 19/2008, 82/2008, 10/2010.

40 Analysis attention to the fact that certain provisions are only partially aligned 4.2. Might Over Right with EU measures, and therefore need to be duly reviewed”. Obviously, and regrettably, the opinion of the Legislative Secretariat was not As for the second indicator - establish and make operational been taken into consideration, although the Secretariat had apparently mechanisms for monitoring, identifying, enforcing and sanctioning acts made the same remarks in its opinions from 16.10.2008, 16.03.2009 of discrimination on the grounds of race and ethnicity, religion and and 11.09.2009 relating to the different drafts of the law. culture, disability, age and sexual orientation – no activities have been taken due to the law’s delayed entry into effect. Again, this confirms the irresponsible manner in which the Government drafts legislation, disrespecting its own internal rules. In the meantime, the single “achievement of the administration” Such behaviour not only undermines the Legislative Secretariat, which is a two-day training session for central and local government holds an essential role if Macedonia has sincere aspirations to become representatives, but - as things go around here – organized and financed a member of the EU, but also raises the question of the reason why the by donors94, rather than the Government and the central budget. Legislative Secretariat exists at all. Why should we spend significant In all fairness, a positive outcome did come out of the travesty funds on an institution whose sole purpose is to provide professional created with the adoption of the Law on Prevention and Protection from opinions if we are ultimately going to discard its expertise? Discrimination - the broad national debate initiated by the civil society From this perspective, it does not amaze us that so many laws sector and supported by the parliamentary opposition. As never before, have failed the test of the Constitutional Court. What is amazing the civil society organizations succeeded in uniting around the single though is the arrogance in which the Government allows itself – with issue of antidiscrimination and established a natural coalition without no responsibility, accountability and virtue whatsoever - to reject the interventions from the political parties. Consequently, discrimnation as opinion of the Legislative Secretariat to push its own agenda, and later an issue was debated like no other issue since independence. This gives on, when the same laws are declared null by the Constitutional Court, hope that the Macedonian society has democratic capacity and it did to accuse the Constitutional Court for being politicised, unprofessional not allow itself to be stifled by the repression of the Government and and undemocratic. Such an attitude on behalf of the Government the parliamentary majority that supported this non-democratic law. shows us that the only one to blame for the enactment of the non- European Law on Prevention and Protection from Discrimination is the Government itself. It seems that the Government fosters a somewhat peculiar understanding of democracy, and if in the past - as we like to say - we lived under the dictatorship of the proletariat, today we are witnessing the democratic dictatorship of VMRO-DPMNE. 94 Monthly Progress Brief, SEA, February 2010, available at http://www.sep.gov.mk/ Content/Bilten/Documents/MPB_February_2010.pdf

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4.3. Conclusions and Recommendations • To establish a Human Rights Fund which - inter alia - will provide support for protection from discrimination and will support civil In the section on the anti-discrimination policy, Macedonia will society organisations working in the field of human rights promotion, not obtain a positive assessment in EC Progress Report 2010. The including anti-discrimination. reason thereof is the fact that the Government (and the parliamentary majority), despite pre-established indicators (from 5th February), the letter from Commissioner Fule, the letters from the Members of the 5. IS THERE POLITICAL WILL TO FIGHT European Parliament, the warnings sent out by the civil society and CORRUPTION? the opinion of the Legislative Secretariat stating that the law is non- In the previous Quarterly Accession Watch Report we highlighted aligned with EU measures, decided to push through its political party that conflict of interests is central in the fight against corruption and agenda. therefore in the focus of the European Union. In addition, we noted that the EC progress reports in the last years have identified progress To mitigate the damage inflicted, Macedonia needs to implement made in this field, but the time for Macedonia to start delivering results the following recommendations: after putting in place the legal framework has also come95. Thus, the • The Parliament must immediately propose a new Law on Prevention infamous Review 2010 anticipates “effective implementation of the Law and Protection from Discrimination. Although time is short, this on Conflict of Interest as amended in 2009 and established track record can be easily realized as the Parliament has the previous drafts of verified and eliminated conflict of interests“96 as the first indicator of the law, which is aligned and agreed upon by the civil society targeting the attainment of the well-known key priority: “Establish a coalition; sustained track record on implementation of anti-corruption legislation • To respect the legal obligations concerning the process for adopting and implementation of the State Anti-Corruption Program”. legislation, and to work on enforcement of mechanisms that will The purpose of the Accession Watch is to regularly remind the enable participation of all stakeholders in the legislative process, public on the commitments assumed by the country in light of raising prior to the submission of the law to the Parliament of the Republic awareness on the difficulties and challenges faced by the Government, of Macedonia; rather than sweeping the problems under the carpet called “name • To develop a 2010 programme targeting the enforcement system dispute”. for the Law on Prevention and Protection from Discrimination. If the above steps are accompanied with relevant budget allocations, it is likely that we can demonstrate the fulfilment of the second 95 Fifth Quarterly Accession Watch Report “Who Needs a Parliament?”, April 2010, pg. 40. indicator, although delayed; 96 Review to the Accession Partnership, 5 February 2010, pg. 4.

42 Analysis

Other indicators established to monitor Macedonia’s progress In this period, more specifically, 10th June 2010, the SCPC, upon its that will secure a positive report this year include: “establish a track own initiative, followed-on a case mentioned in the State Audit Office records of investigations and prosecutions in compliance with the report concerning the results from the audited financial reports of the relevant provisions of the Criminal Code, including illegal proceeds and Directorate for Prevention of Money Laundering and Financing Terrorism confiscation”97, “securing full regulatory and practical autonomy for (hereinafter: DPMLFT) for 2008. Based on Article 49, Paragraph 1, item enforcement of orders for intercepting communications and use of the 5 of the Law on Prevention of Corruption, SCPS adopted a conclusion equipment for interception of communications; further implementation and urged the Government of the Republic of Macedonia to dismiss of the Action Plan for establishing a National Intelligence Database Vane Cvetanov, director of DPMLFT, on the grounds of illegal spending as anticipated in the NPAA”, and “establish a track record of verified from the 2008 Budget of the Republic of Macedonia. Property Declarations, establish a track record of adopted and enforced SCPC mention two bases for such an initiative – enforcement of court decisions in high profile corruption cases”98. the Law on Civil Servants (hereinafter: LCS) and the Law on Public Procurements (hereinafter: LPP). According to SCPC, in 2008 the 5.1. Long Way to Go DPMLFT violated the LCS by recruiting 29 persons through a temporal employment agency, but failed to secure the consent of the Ministry of The main actor for implementing the Law on Conflict of Interest Finance. According to SCPC, the number of temporary employed persons is the State Commission for Prevention of Corruption (hereinafter: is high for which DPMLFT spent 6,326,000.00 MKD, a sum higher than SCPC). The way the SCPC works will influence law enforcement (fully the expenditure for salaries of regular full-time employees. Concerning and adherently, or incompletely and voluntarily). The changes that the enforcement of the Law on Public Procurements, SCPC believes occurred within SCPS secure the basis for moderate optimism, at least that in the implementation of public procurement procedures in 2008, at first glance. Notably, the visible improvements of its functioning on DPMLFT did not enforce the provisions from the LPP which establishes the most trifle and elementary basis – SCPC website – which now hosts grounds for illegal spending of budget funds. more information is also an extremely important level. In addition, The outcome of this initiative is well-known to the public – Vane the new president of the SCPC is more active and more available to Cvetanov resigned from public office, but not without a fight. First, the media, thereby to the public, especially when compared to the we saw him delivering boxes full of documents to SCPC and the Public previous President, Mirijana Dimovska. Does this mean that Macedonia Prosecution, claiming that the crime in Macedonia is high-profile, and will finally be able to harvest tangible results from the fight against shortly afterwards he publicly accused Prime Minister Gruevski as the corruption? chief protector of crime by stating: “I resign from my office, but not

97 Ibid because of the SCPC, but because of your hypocritical politics and your 98 Ibid 43 Sixth quarterly Accession Watch report unwillingness to fight real crime99“. He also stated that he was pressured training, etc.)? This question cannot be answered in this short period of from the Government to refrain from giving public statements and office held by the new President of SCPC. The public is still sceptical as provided he did so, the case against him would be forgotten. These regards the SCPC new-found freedom from the ruling government’s hold instructions were allegedly accompanied with an indecent proposal – if and requires answers to several questions related to the DPMLFT case. he resigned from office now, he would be appointed to a new function Some of them are addressed further in this Quarterly Accession Watch in September. Report. The Government responded with a press-release claiming that Vane First, SCPC acted upon its own initiative based on SAO report. This Cvetanov did not resign, but he was dismissed from the office on the raises several dilemmas: why is the SAO performing audits and why the regular session of the Government earlier that day (21st July 2010), parties addressed in the audit reports fail to follow-up the findings leaving and the new acting director of the DPMLFT, Vladimir Atanasov, was the SCPS to act? Notably, SAO performs external financial control of central appointed from the line of employees. VMRO-DPMNE supported the government institutions financed with taxpayer money in Macedonia. In a Government by giving the following public statement: “Cvetanov must transparent and accountable country, SAO controls matters that might have realize the fact that his political party membership is of no help to him been omitted by the so called internal financial audit, which is performed if he has violated the laws”. by internal auditors employed within the institutions themselves and in the Ministry of Finance (MOF), as the second level of control. The purpose To put things into perspective, Vane Cvetanov is the second high- of internal audits is to provide instruction for the institution’s management profile functionary to leave public office with serious accusations made to improve operations. Should the internal audit identify certain criminal on the address of the governmental elite, the first one being the former irregularities, it reports them to the management, which then informs the spokesperson of the Health Insurance Fund, Dejan Gacov, who left the MOF, and then, depending on the level of committed irregularities, MOF office with allegations that Gruevski and his team were destroying the decides whether and it will respond. SCPS acts as the societal auditor in the health care system in Macedonia on daily basis. system and represents the last instance for initiating actions. Transparent and accountable countries do not have anti-corruption commission, not 5.2. Chain of Responsibility because there is no corruption, but because the checks-and-balances are in place institutionally, and civil society organisations monitor the processes SCPC’s increased visibility and presence in the reporting period is and assist the authorities in identifying the irregularities in the system. indisputable. But is this due to the initiative of the new President, Ilmi In our case, the fact that the action was motioned by SCPC is Selmani, or is the SCPC only harvesting the results from the years-long indicates that the internal control is not fully functional (both within preparations (establishing the legal framework, strategy, action plan, the DPMLFT and MOF), while the external control (SAO) is ignored. 99 Excerpt from Vane Cvetanov’s public address, 21st July 2010, published in all media.

44 Analysis

The European Commission is aware of that and therefore, year after watch report.100 Does this mean that SCPC intends to look into the year, the Progress Report for the Republic of Macedonia reiterates the high numbers of temporary employments that took place (and are still fact that the Parliament needs to discuss the findings of SAO reports taking place) at other institutions? leading to conclusions that will serve as guidelines for implementing In addition, SCPC acted on the 6,326,000.00 MKD spent for salaries the recommendations provided in the reports. of temporary employees. Again, new dilemmas! How is it possible Unfortunately, our Parliament decided to “ban” any discussion on for a country that has a treasury system in place to disburse funds SAO reports, allegedly because the Parliament would not like to influence without the knowledge of the MOF, more so as the funds were for SAO. Such an attitude indicates that the Parliament either lacks basic salaries of temporary employees, disbursed on monthly basis for a knowledge on the need for an institution like SAO, or purposefully longer period of time? Does this mean that the treasury system doesn’t attempts to conceal the financial irregularities of the authorities, work or that disbursements were made up to the point that they served and thereby consciously endangering Macedonia’s European agenda. someone’s interests? Moreover, if we analyze who the actual persons If the Parliament has a tendency to cover up for the ruling majority, employed in DPMLFT were, the ground for corruption allegations the single explanation of the role of the SCPC is that it is merely an become questionable as well. Were they friends and relatives of instrument in the hands of the government to put into motion (under Vane Cvetanov, who enjoyed a personal benefit (creating a friendly the pretence that it acts upon its own initiative) when a political party working environment) by employing them? Were they paying bribes soldier stumbles into something he/she should not have in the first to Vane Cvetanov to be employed (securing personal financial gains place (by accident or intentionally) and when he/she is persistent to for Cvetanov)? Or were they political party soldiers of VMRO DPMNE get answers thereto, he/she will ultimately end up like Vane Cvetanov employed by Vane Cvetanov who was only carrying out party orders? (as indicated in Cvetanov’s allegations). Obviously, SCPC has to work a great deal more to untangle this It is interesting to analyse the reasons behind SCPC action. Namely, extremely important case. The public is waiting to hear the answers to in SCPC’s opinion, the number of temporary employed people at DPMLFT the questions raised in this Quarterly Accession Watch Report. This is is high and the budget funds were spent for other purpose. But, what necessary not to clear the name of Vane Cvetanov, but to point out the is the definition of “high number” of temporary employed. If 29 is fact that the case must not be closed with Vane Cvetanov’s dismissal a high number, why didn’t SCPC act on the 251 temporary employed from public office. at the Ministry of Defence (hereinafter: MOD), or to 386 temporary employments at the SEA, made only in the course of 2009? The figures given above were obtained by means of freedom of information, i.e., the FOI applications analysed in the previous quarterly accession 100 Fifth Quarterly Accession Watch Report “Who Needs a Parliament?”, April 2010, pg. 52.

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5.3. Public Pressure Always Pays Off of Interest at Local Governments” on 15th July 2010. Representatives from local governments, the Association of Local Self-Government Units If the previous Quarterly Accession Watch Report covered the (hereinafter: ZELS), the Ombudsman of the Republic of Macedonia, non- ambiguity related to the enforcement of one of the main provisions governmental sector and experts102 attended the debate. On 23rd July, stipulated in the Law on Conflict of Interest - submission of Property SCPC published the conclusions from the debate, those being: Declarations by all legally-obliged officials - in this reporting period 1. There is a need for debates, training and workshops targeting the enhanced action of SCPC as regards imposing sanctions to the officials and aimed at better knowledge as regards the forms in officials who failed to do so is quite visible. The press-release of the which conflict of interest can occur; SCPC dated 24.06.2010,101 provides the names and surnames of all officials who failed to comply with the legal obligation. It includes a 2. Different interpretation of laws governing this matter provide space Member of Parliament, 26 judges from the Administrative Court, two for occurrence of conflict of interests both on central and local judges from the Appeals Courts and nine judges from the basic courts, level; thirteen mayors and 569 municipal councillors from a total of thirteen 3. The legal framework needs to be reviewed in order to curtail municipalities. In its press-release, SCPC also informs that activities discretionary rights of local governments; are underway to motion misdemeanour charges against the respective officials, which deserves acknowledgement. 4. Political will is necessary for the successful enforcement of the Law on Conflict of Interest; SCPC, acting in conflict of interest cases, in particular related to elected and appointed officials on local level, assessed that 5. Legal solutions for building accountable local governments should prevention actions need to be taken to enhance prevention. This be adopted with the participation of the non-governmental public announcement addressed to all political parties followed the organisations, media and experts; press conference organized by United for Macedonia on 1st July, when 6. Database on public office holders should be established and used as the political party disclosed that within the local government units, a prevention tool for the same people to hold two or more offices. accumulation of functions is widespread and political party soldiers are The public pressures created made the political parties turn to their receiving 2 and even 3 salaries, which is a classical example of conflict members and demand their renouncement of the second or third office of interests. in the shortest time possible. Interestingly enough, most of people To encourage deconcentration of accumulated offices, SCPC with conflict of interests decided to renounce their elected position organized a debate in the Club of Members of Parliament titled “Conflict 102 List of participants available at http://www.dksk.org.mk/index.php?option=com_cont 101http://www.dksk.org.mk/index.php?option=com_content&task=view&id=199&Itemid=1 ent&task=view&id=199&Itemid=1

46 Analysis when selecting the office they would keep. This in itself is an indicator From the total of 90 political parties registered in Macedonia, only of democratic deficiency of the society. Still, this event will most 35 submitted their annual financial reports for 2009 to the PRO. Not a probably be acknowledged in the next EC Progress Report. single political party has posted financial reports on its website, while some political parties, although registered, do not even have their own website (or at least we could not find them). None of the political 5.4. How Are Political Parties Financed? parties submitted quarterly reports on donations for 2009.

The second short-term priority from the Accession Partnership If a political party fails to publish the financial reports on its requires: “ensure proper follow-up of recommendations issued by website and in at least one daily newspaper, it should be fined in the supervisory bodies, in particular in the field of political party financing amount of 2,500 to 5,000 EUR pursuant to the law. Such a fine has not and public spending”. The Review 2010 therefore sets the following been imposed to any political party for not complying with the legal indicator to monitor the progress achieved: “ensure follow-up of the provisions, which is indicative of the lack of political will, but also of recommendations of the SAO and the SCPC, especially in regards to the fact that legal solutions alone, without the additional instrument- financing political parties/campaigns ad issues related to public funds. mix, is not enough to implement any kind of reform. Securing full transparency of public spending, especially the spending Therefore, we would like to draw attention to the fact that financing for state advertising and introducing sanctions to discourage detected political parties will be subject of EC’s assessment and included in the irregularities“. Progress Report for the Republic of Macedonia later this year, thus the We already stressed the importance of discussing SAO reports and political parties have a moral obligation to adhere to the law, even if undertaking proper follow-up activities. This section will analyse the that is belated. financing of political parties. Political parties are legally obliged to submit annual financial reports 5.5. Conclusions and Recommendations and publish them on their website and in at least one daily newspaper, as well as in the „Official Gazette of the Republic of Macedonia“103. In Significant progress was noted in the operation of SCPC, starting case of donations, political parties need to submit quarterly reports to from the better quality of its website to the increased openness the Ministry of Finance, the State Audit Office and the Public Revenue and visibility in public. In this reporting period, SCPC demonstrated Office (hereinafter: PRO). openness to the media and the civil society and exerted pressure on the political parties, which in turn addressed their membership and demanded renouncement of accumulated public functions (and 103 Article 27-a from the amended Law on Financing Political Parties, from 28th July salaries). 2009.

47 Sixth quarterly Accession Watch report

SCPC motioned charges against the director of the Directorate accounts. Although belated, this will be positively assessed by the for Prevention of Money Laundering and Financing Terrorism, Vane EC in this year’s Progress Report; Cvetanov, but the case is not closed yet. The public expects further • SCPC needs to develop a grant-giving scheme and announce an actions to identify the reasons behind the alleged abuse of public open call to fund projects of CSOs dealing with corruption issues. office, and appropriate sanctions for other perpetrators related to the These organizations would assist SCPC in exercising public pressure charges in question. Vane Cvetanov’s allegations implicating Prime over political elites; and Minister Gruevski need to be properly seen into by the SCPC. • SCPC must examine the Government’s (and the Parliament’s) The political parties were brave enough to vote for the amendments decision to re-programme tax debts and write-off interests of public to the Law on Financing Political Parties, but lack the courage to adhere enterprises. to the law. Hence, less than half of the political parties registered in Macedonia have complied with the legal obligations. 6. PUBLIC ADMINISTRATION – PLACE FOR Therefore, in the wake of this year’s EC Progress Report, we propose SMARTALIKES the following recommendations: Public administration reform is one of the most important fields, • SCPC must continue working on the case of Vane Cvetanov and not merely in terms of Macedonia’s accession into the EU, but for look into the allegations implicating Prime Minister Gruevski. The the overall progress of the country, including economic development. persons employed by Vane Cvetanov need to be analyzed to see Numerous of times the Government has said that Macedonia needs a whether employments were made at the discretion of Vane Cvetanov small, modern, professional and non-partisan administration, able to or whether he was carrying out political party orders, in which case implement the necessary reforms and bear the burden of the upcoming the corruption committed by the ruling VMRO DPMNE must be accession negotiations. investigated; Subsequently, public administration is always in the focus of • Ministry of Finance must explain how was it possible for DPMLFT the EC. Hence, the EC and the Government specified the subject of to withdrawn funds from the Treasury for salaries of temporary progress assessment in this field and confirmed the indicators against employees without the knowledge of the minister himself; which progress will be measured in Review 2010. As a reminder, this • SCPC must deal with the high number of temporary employees in year the EC will require: “full compliance with the provisions and the state institutions, since this issue seems to be the “biggest mystery” spirit of the Law on Civil Servants to secure requirement, performance in Macedonia for the last 4 years; assessment ad carrier advancement based on transparent and merit- based criteria, including the period prior and after the elections and • Political parties must submit (and publish) their 2009 financial

48 Analysis full implementation of the most recent amendments to the law and which were fiercely debated within the Parliamentary Committees and alignment of other special laws with the Law on Civil Servants “104. on the plenary sessions of the Parliament in the course of the adoption As regards reform implementation, the EC expects: “the Committee of the last amendments to the law. Notably, Article 3-a defines state on Public Administration Reform to efficiently lead the reform process administration bodies (hereinafter: SAB) where certain issues related by coordinating all relevant institutions at all levels and to develop to the rights, obligations and responsibilities of employees in the monitoring and evaluation instruments in compliance with the relevant bodies “can be regulated by a law, in a manner different from conclusions of the committee and to implement the Strategy on Public the present law (i.e., Law on Civil Servants), when deemed necessary due Administration Reform “105. Considering the fact that the reform mostly to the specific nature of the tasks and the specificity in the realization depends on human resources, the EC insists on: “implementation of of special duties and authorizations “. The SAB from this category, given the recommendations provided by the State Audit Office concerning in Article 3-a, are the following: Intelligence Agency, Directorate for human resource management and internal organization, with a special Security of Classified Information, Army of the Republic of Macedonia, emphasis on temporary recruitment, recruitment of members of ethnic Crisis Management Centre, Protection and Rescue Directorate, security communities, internal audit and control systems.”106. How advanced are officers within penitentiary and correctional institutions, custom and we and what kind of report can Macedonian citizens hope for next tax personnel, officers with special duties and authorizations and police November? officers within the Ministry of Interior, auditors of the State Audit Office, and employees in agencies, directorates, regulatory bodies and other institutions that by law require the establishment of an Executive 6.1. Consolidated, Yet Not Clear Board, except for the Agency for Managing Seized Property.

The Legislative Committee of the Parliament of the Republic of Although the LCS stipulates in detail who can acquire the status of Macedonia published a consolidated text of the Law on Civil Servants civil servant, Article 17-k provides an opportunity for SAB employees (hereinafter: LCS) 7th June 2010. Considering the fact that the respective referred to in Article 3-a to acquire this status “when needed or upon the law was subject to many amendments since its adoption, the publication request of the respective body, to be deployed at the same administration of a consolidated text was to facilitate enforcement. Nevertheless, the body to another job position and to obtain the status of civil servant, publication of the consolidated text only brought to the surface some upon previously obtained consent from the Agency and provided the facts from the scope of public service, as defined in Article 3 and 3-a, civil service exam has been passed”. In other words, the recruitment of employees at SAB referred to in Article 3-a does not require an open call for civil service vacancies, and some can become civil servants 104 Review of the Accession Partnership, 5th February 2010, pg. 4-5. only by taking the civil service exam. This really means that some 105 Ibid people can initially be employed in SAB without due application of 106 Ibid

49 Sixth quarterly Accession Watch report the recruitment provisions stipulated in the LCS and then become civil and 30 local government units, which accounts for around 35% of SAB servants without going through recruitment procedure, mandatory in the country. for all other SAB as specified in Article 3-a. However, the principle The number of published open calls for recruitment of civil servants on transparency in regard to civil service recruitment, as defined in (within the period 1st October 2009 until May 2010) is 133 for a total Articles 12 to 17-k of the LCS, as well as the principle of mobility of 562 new posts. The Annual Civil Servants Training Plan for 2010 was defined in Articles 17-d to 17-k will be violated. pursued in compliance with the dynamics set therein. This violation of the principles of transparency and mobility In May 2010, the Coordination Working Group of the human resource could negatively impact the accession process of Macedonia, since management sectors /units adopted a document titled “Standardized it will that SIGMA’s recommendations for full professionalization job-descriptions in human resource management sectors/units in the and depoliticisation of civil services provide for in Article 17-k, and civil service”. The purpose of this document is to assist the process of unfortunately secures a mechanism to override civil service recruitment unification of job descriptions in the course of developing the relevant procedure in some SAB. At this point we would like to reiterate the job classifications. EC’s conclusion from the meeting of the Stabilization and Association Committee from June 2010: “the Government’s resolve to significantly limit temporary recruitments and to recruit the relevant positions in 6.2.Law on Civil Servants – Stick Rather than Carrot line with the procedures stipulated under the Law on Civil Servants is welcomed “107. After the many turbulences and contradictions accompanying the Otherwise, the implementation of the Law on Civil Servants (LCS) adoption of the Law on Public Servants, it was finally published in the was initiated with inconsistent and incomplete enforcement of the “Official Gazette of the Republic of Macedonia” No. 52 from 16.04.2010. provisions therein by some SAB. Notably, SEA’s monthly progress brief A short overview of the comments to the draft-law presented in the 108 from April 2010 lists that only 17 central level bodies and 23 local previous Quarterly Accession Watch Report , and how they were or self-government bodies have aligned their internal organization and were not resolved in the law’s final version follows: job positions in line with the LCS, although all SAB were obliged to 1. The draft-law did not provide for collective bargaining agreements, do so when the law officially entered into effect (23rd March). By May although it governs the labour rights of more than 100.000 2010, this obligation was implemented by 22 central level state bodies employees. The final version made the following correction in Article 23 “the public servant shall be entitled to salary and social 107 Minutes from the 7th Meeting of the Stabilization and Association Committee of EU contributions under the terms, conditions and criteria stipulated and the Republic of Macedonia, Skopje, 3-4 June 2010. 108 Fifth Quarterly Accession Watch Report “Who Needs a Parliament?”, April 2010, pg. 45.

50 Analysis

by the law, as well as the collective bargaining agreement and the is initiated and when the public servant is temporarily removed general act of the state administration body “. from the post, but deadlines for the duration of the procedures are not set. 2. No additional efforts were made for the law to be adopted with adequate consultations with trade unions and employer 7. As was the case with the Law on Civil Servants, the Register associations, although the law invades the area of labour rights and of Public Servants is treated as classified data, which directly labour relations, which is contrary to the declared constitutional makes the number and qualifications of public servants non- principle on economic and social dialogue in the Republic of transparent. Macedonia. 8. The procedure and the consequences of performance assessment, 3. The provisions on “redeployment of public servants from one including the number of assessments anticipated for every six institution to another” remain imprecise, while the recruitment months (the draft-law anticipated assessments every four months) and redeployment instruments are inconclusive, without any will probably be difficult to implement, having in mind the total restrictions in terms of time and geographical location and based (for the time being unknown) number of public servants. on the discretionary right of the employer. Initial considerations challenge whether this law provides for 4. The provision (Article 30) that stated: “for the purpose of exercising true quality of public services or is, yet again, only additional their economic and social rights, public servants shall have the right bureaucratization of the public service? The general impression to establish trade unions and be members thereof, under terms is that this law does not provide specific measures to implement and conditions and in a manner stipulated by law“ remains Recommendation VIII from the GRECO Report109 (Strasbourg, 10-12 although contrary to the constitutional provision on the right of October 2005), that refers to “the establishment of a legal framework association and organization into trade unions (thereby making based on modern public administration principles for a large number of void the need for the matter in question to be regulated in a public servants that would be, to the extent possible, appropriate to the separate law). regulations governing civil servants”. In the opinion of some MPs,110 the objective of the law is “to discipline the 125,000 public servants and to 5. Disciplinary measures imposed on public servants by managers intimidate those that dare raise their voice”. of the institutions on the basis of previously submitted written report from the supervisor is direct violation of presumption of innocence.

6. Public servants’ salaries are reduced up to 50% (the draft-law 109 Group of States Against Corruption at the Council of Europe stipulated up to 70%), in the period when a disciplinary procedure 110 Sonja Mirakovska, MP from NSDP, Utrinski Vesnik, 10th April 2010.

51 Sixth quarterly Accession Watch report

6.3. New Budget adjustment, Old Story Within the framework of the K-account, activities are implemented in relation to public administration capacity-building and the creation 11th June 2010, the Government of the Republic of Macedonia of an efficient state administration able to successfully implement the presented the Parliament with the draft-adjustment of the 2010 Budget process of integration within EU and NATO. For that purpose, training of the Republic of Macedonia. In his brief rationale for the budget and in-service training is planned for public administration on efficient adjustment, the Minister of Finance111, inter alia, referred to the EU budget management, advanced financial management of funds and on two occasions, both directly and indirectly. Namely, the Deputy capacity-building for EU regulations. Prime Minister Stavrevski reiterated that “one of the main goals of the The M-account supports the institutions in EU priority projects at budget adjustment is to protect all vulnerable categories of citizens from the Secretariat for European Affairs (SEA) and activities related to IPA the effects of the European crisis”, and that “unlike many European funds aimed to implement the strategic priority of the Government and countries, where such measures were necessary (increased taxes and start EU accession negotiations. salary and pension cuts), we think that such measures are not needed in the Republic of Macedonia and hence the budget adjustment does not propose them”. Such statements raise the question - why and how come the recently referred to “world economic and financial crisis” suddenly became “European crisis”? Irrelevant is whether this was a typo or lapsus lingua, as the intention of Minister Stavrevski to give certain (negative) European context for the draft-adjustment is obvious. In that context, the following summary table provides brief analysis of the budget adjustments in the Republic of Macedonia in the period 2008 - 2010, with emphasis on total budget expenditure, governmental programmes in general, and in particular the K-account for public administration reform and the M-account for EU integration. Having in mind that governmental programmes and subprogrammes reflect the activities of the Government aimed to implement strategic priorities, it is interesting to see how the budget adjustments were reflected on these two programmes.

111 Draft budget adjustment adopted by the Government, http://www.finance.gov.mk/ node/1554

52 Analysis

Budget Adjustment Proposed (in 000 MKD.) Budget 2008 Budget 2009 Adjustment 1 Adjustment 2 Budget 2010 2008 adjustment 2010

Budget (total 134.279.812 150.371.000 164.797.000 154.516.000 149.594.000 153.796.000 149.093.306 expenditure) Change (%) 11,98% -6,24% -9,23% -3,06%

Total Accounts 16.263.449 18.146.956 20.331.331 18.715.863 17.600.214 18.182.460 17.695.047 Change (%) 11,58% -7,95% -13,43% -2,68% K – public 582.006 691.779 331.410 296.472 189.251 417.638 327.258 administration reform Change (%) 18,86% -10,54% -42,90% -21,64% M – EU 86.611 201.348 947.124 301.883 263.183 754.710 678.992 integration Change (%) 132,47% -68,13% -72,21% -10,03%

Source: Budget and Budget Adjustments of the Republic of Macedonia for the years 2008, 2009, 2010

As shown on the table, only 2008 budget adjustment provided an • In 2009 and 2010, the expenditure decrease in K and M-accounts increase of total expenditure, while 2009 and 2010 budget adjustments are always bigger, both in terms of the general decrease reduce total expenditure. The following conclusions can be derived rate applied to the total budget and in terms of decrease in from the table above: accounts. Notably, the first 2009 budget adjustment cut the budget by 6.24% and the accounts by 7.95%. The K-account • In 2008, total expenditure was increased by 11.98% from the was decreased by 10.54% and the M-account by preposterous initially planned funds, and the increase is almost identical 68.13%. The cuts were even more dramatic in the second across all accounts (11.58%). Nevertheless, the increase adjustment, when the K-account was reduced by 42.9% from in K-account is higher from the average (18.86%), while the initially planned budget and the M-account by 72.21%. M-account was significantly increased for 132.47%.

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• The effect of the adjustment proposed for the 2010 budget to record keeping and training of civil servants, for which it is similar. Although total expenditure is decreased by 3.06%, holds full competence? and total accounts by 2.68%, the funds in the M-account The comparison of the budgets allocated to the two institutions are cut by 10.03%, which is three times the cut of the total competent to implement public administration reform and EU accession budget, while the K-account is reduced by 21.64%. is also interesting, those being the Civil Servants Agency (CSA) and These indicators raise at least three questions that need to be SEA. The table below presents the budgets of these two institutions appropriately answered, those being: and the number of employees in the period 2008 – 2010. 1. Were public administration reform and EU integration priorities As shown in the table, the number of employees at SCA increased by for the Government of the Republic of Macedonia only until 9 in the last two years, but in the SEA it decreased by 6. Most striking 2008? however, are the dramatic budget cuts for these two institutions in all new budgets as from 2009. Notably, the new 2010 budget adjustment 2. Does the Government of the Republic of Macedonia believe cuts CSA’s budget by more than 7% from the initially planned, while that the necessary reforms in the public administration and SEA’s budget was reduced by around 20%, which in both cases by far EU integration are completed? exceeds the total cut made to the 2010 budget (3.06%). Consequently, 3. How will the Civil Servants Agency implement its increased the implementation of CSA 2010 priorities listed in the CSA 2010 competences and tasks stemming from the new Law on Public Programme, in particular those in the section on civil servants’ training Servants and the amended Law on Civil Servants pertaining and capacity-building are seriously endangered.

Proposed adjustment Budget 2008 Budget 2009 Budget 2010 2010 in 000 No. of No. of in 000 No. of No. of Institution in 000 MKD in 000 MKD MKD employees employee MKD employees employees

CIVIL SERVANTS AGENCY 35,.263 54 65,660 54 40,182 56 37,149 63 SECRETARIAT FOR 310,427 59 661,143 57 141,333 48 116,233 53 EUROPEAN AFFAIRS

Source: Budget and Budget Adjustments of the Republic of Macedonia for the years 2008, 2009, 2010

54 Analysis

In addition to the reduced number of employees at SEA, another things even more confusing, the Minister of Justice, on the meeting dramatic budget cut is proposed compared to 2009. Notably, the budget of the National Council for European Integration, announced that is reduced by 550 million MKD or by more than 4.5 times (468%). the number of employees in the public services was 150,000?! As This raises doubts in SEA’s capacity to successfully lead the European a reminder: the proposed Law on Public Servants developed by the integration process, and whether the staff drains is compensated for by Ministry of Justice, specifies the figure of 105,000 employees in public recruiting people through Temporary Employment Agencies? services. How is it possible for two Ministers (finance and justice) to dispose with different figures as regards the number of public servants in the Republic of Macedonia? 6.4. Disconcerted Government According to the Administration Workers Union, whatever figure Nobody in the country knows the exact number of employees in produced should be increased by at least 30%, because all state and public administration. The Government and the opposition parties public institutions employ a large number of people through Temporary have different figures. Contrary to the declared commitment of the Employment Agencies who are paid from the budget. Government to reform and down-size, in reality, administration is Finally, this Rashomon Effect to be complete, the opposition constantly growing. Moreover, nobody seems to know what kind of joins in with their figure on public servants. According to SDSM, the public and state positions are recruited or the qualifications of the Government is concealing the actual figures on purpose because it wants recruited staff therein. to manipulate the employments of loyal political party members and According to the Minister of Finance, the number has been constant disguise unproductive budget expenditure. Jovan Manasievski, MP from for months112 and the number of public service employees accounted LDP, indicated that the Government misconstrued the figures and that for 96,946 in 2009. 76,361 of them are budget beneficiaries, 18,621 all budget expenditure in January 2010 were higher by 20% compared are in healthcare services, while 1,964 are from national funds and to last January, while Risto Penov claims that public administration, as agencies. In the Minister’s opinion, in the period from 2006 until the presented by the State Statistic Office, accounted for 116,483 people in end of 2009, only 2,300 were employed in public administration, all of 2009 and that “3,877 new people were employed in the administration which were recruitments related to the Framework Agreement. On the only in the last quarter of 2009”. According to Nova Demokratija, the other hand, the Prime Minister stated that 5,000 new employments in official data from the Secretariat for the Implementation of the Ohrid the public administration happened in 2009, while Nova Demokratija Framework Agreement indicated that 9000 people were employed in revealed a number of 9,000 new employments made in 2009. To make the public administration in 2009, 1000 of who were Albanians and only 250 of them go to work while the remaining 750 stay at home and 112 Utrinski vesnik, 15th March 2010 – Nobody knows the number of public servants

55 Sixth quarterly Accession Watch report receive salaries because their positions were not included in the job Commission for classification and the government obstructs their employments113. 7 the Protection of 22 22 23 26 Competition Be as it may, these developments have nothing to do with public Directorate for administration reform. Public administration is still overcrowded, 8 the Protection of 18 19 22 22 inefficient, politicised and unprofessional on the detriment of the Personal Data ever-decreasing number of employees in the real economy. For the time State Commission being, the number of public servants remains a puzzle. The following for Public 9 NA 0 10 10 table attempts to determine the number of employees at central level Procurement administration bodies: Appeals Fact Verification 10 NA 0 11 12 Commission Number of employees Constitutional Court 2008 2009 Jan. 2010 May 2010 11 of the Republic of 28 29 29 30 Macedonia President of 1 Republic of 33 33 30 35 Government of Macedonia 12 the Republic of 405 352 268 266 Macedonia 2 Intelligence Agency 247 247 242 238 General Affairs Parliament of 13 Office of the 321 320 316 308 3 the Republic of 311 339 344 360 Government Macedonia Legislative 4 State Audit Office 90 95 115 122 14 25 20 24 23 Secretariat State Commission General Attorney 5 for Prevention of 16 16 14 16 15 of the Republic of 95 94 97 104 Corruption Macedonia State Election 6 17 17 30 28 Agency for Commission 16 Development and 19 19 16 16 Investments 17 Civil Servant Agency 54 54 56 63

113 Flora Kadriu, MP from ND, Utrinski vesnik, 15th March 2010

56 Analysis

Secretariat for 31 Ministry of Finance 584 600 638 620 18 59 57 48 53 European Affairs Ministry of Finance 32 NA NA NA NA Secretariat for – state functions implementation 19 28 0 620 878 Customs of the Framework Administration of 33 955 962 1.103 1.115 Agreement the Republic of Agency for Rights of 20 NA 0 2 6 Macedonia the Communities Commodity Reserve 34 22 22 25 31 Agency for Agency 21 Managing Seized NA 0 4 10 Public Revenue 35 1.258 1.244 1.240 1.219 Property Office 22 Ministry of Defence 8.736 8.648 8.680 8.129 36 Financial Police 11 24 30 30 Directorate 37 Ministry of Economy 467 486 489 531 23 for Classified 32 33 34 34 Foreign Investment 38 20 19 48 47 Information Agency Directorate for Agency for 24 Protection and 263 259 263 274 39 Promotion and NA 0 0 7 Rescue Activities Support of Tourism Crisis Management 25 270 272 281 299 State Office for Centre 40 Protection of 33 35 35 33 Ministry for Internal 26 12.263 12.253 12.321 12.198 Industrial Property Affairs Ministry of 27 Ministry of Justice 596 599 626 335 41 Environment and 151 156 169 163 Directorate for Physical Planning 28 Execution of 576 618 742 769 Ministry of Sanctions 42 Transport and 198 207 225 234 Directorate for 29 NA 0 1 361 Communications Record-keeping Agency for Civil Ministry of External 43 327 326 65 64 30 391 394 413 434 Aviation Affairs

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Ministry of Ministry for 54 NA 1 11 21 Agriculture, Information Society 44 615 628 809 964 Forestry and Water 55 Ministry of Culture 158 168 171 175 Management Financing Cultural 56 1.954 1.994 1.979 1.951 Agency for Activities Supporting 57 Ministry of Health 234 267 279 282 45 Agricultural 128 137 137 145 Ministry of Local Development – 58 37 37 33 40 Government Bitola 59 Diaspora Agency 18 19 21 21 Hydro- Commission for 46 meteorological 203 201 202 205 Protection of Free Directorate 60 16 16 17 16 Access to Public Financial Support Information of Agriculture and 47 43 46 87 90 Commission Rural Development for Relations Agency 61 Between Religious 8 8 10 10 Ministry of Labour 48 1.570 1.548 1.528 1.490 Communities and and Social Policy Groups Ministry of Agency for Cadastre 49 Education and 9.754 8.927 8.565 7.836 62 863 881 865 859 and Real Property Science State Statistical Education 63 249 255 268 277 Office 50 Development 158 158 172 162 State Archives of Bureau 64 the Republic of 227 227 227 226 National Agency for Macedonia European Education 52 10 10 16 16 Bureau for Court Programs and 65 26 27 25 24 Expertise Mobility Macedonian Agency for Youth 53 29 28 34 37 66 Academy for Science 58 56 58 59 and Sports and Art

58 Analysis

Regional 6.5. Non-assessable Civil Servants 67 Development 14 14 11 11 Bureau CSA is competent for the performance assessment of civil servants. 68 Judiciary 2.838 2.867 2.907 2.960 Pursuant to the Law on Civil Servants, by the end of April 2010, all Public Prosecution state administration bodies are obliged to submit to the attention of 69 of the Republic of 359 358 396 418 CSA reports from the performed assessment of their civil servants for Macedonia 2009. Nevertheless, by the stipulated deadline, a total of 45 reports 70 Ombudsman 69 67 69 68 were submitted to the CSA covering the performance assessment at Agency for National 26 central level state administration bodies and only 19 local self- 71 39 50 52 52 Roads government units. By the end of May 2010, 87 reports were submitted Health Insurance to CSA (41 by central level bodies and 46 by local government bodies), Fund of the 72 685 710 712 695 which accounts for approximately 55% from the total number of Republic of state administration bodies in Macedonia. Yet again not all state Macedonia administration bodies are complying with this obligation, which is Employment Agency quite distressing. Otherwise, this is an important segment of public 73 of the Republic of 537 536 521 517 administration reform that is related to state service mobility. Macedonia Pension and CSA will develop and submit the 2009 summary performance 74 Disability Insurance 733 727 700 665 assessment report by the end of June 2010114, but its relevance is Fund of Macedonia questionable knowing that only 55% of the state administration bodies Total 50.573 49.858 50.631 49.845 complied with the legally stipulated obligation. Detailed analysis of the Source: Budget of the Republic of Macedonia for 2008, 2009 and 2010 findings of CSA Report will be included in the next Quarterly Accession (including proposed budget adjustment) Watch Report. According to the data presented, the number of civil and public servants employed at central level administration bodies is quite stable 6.6. Where are the Projects? in the last three years and accounts for approximately 50,000. If that is the case, then who are the additional budget beneficiaries that - At the moment, two EU-funded public and/or state administration according to the Minister of Finance - account for around 76000, or, projects are implemented, those being: according to the Minister of Justice account for 105,000 or 150.000?! 114 Confirmed in SEA’s Monthly Progress Brief, May 2010.

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• The Technical Assistance for the Civil Servants Agency and 6.7. Conclusions and Recommendations Strengthening the Implementation of the National Training Coordination System is currently implemented at the CSA by Instead of pursuing public administration reform, the Government the Irish Institute of Public Administration. continues to outwit the public by doing one thing, but presenting • The Capacity Building for the General Secretariat is implemented another to the EU. The manner in which the Law on Civil Servants was within the General Secretariat by Hulla & Co Human Dynamics adopted - without consultations and dialogue with the Trade Unions - KG. indicates that Macedonia has designed another way to avoid attainment of the short-term priority that reads: “develop the social dialogue However, little information on the projects, processes, activities, mechanism and ensure operational and representative social dialogue” outcomes and implementation status is published or publicly available. as given in the Review 2010. The number of recruitments, both full- Notably, the projects have no websites, whereas the SEA monthly time and temporary, remains a mystery, and different governmental progress brief does not include information thereof, nor the websites of representatives provide different figures on the size of the public CSA, the General Secretariat of the Government or the Mission of the EU service. 2010 budget adjustment reduced the funds allocated for CSA, in Macedonia (as the contracting authority) provide any information on while SEA’s budget was reduced by 468%. Performance assessment of the projects. Having in mind that the EU requires adherent application civil servants is far from fulfilling its purpose if only 55% of the state of the rules governing communication and visibility, it is difficult to administration bodies choose to implement their legal obligation. NPAA understand why no public (and easily) accessible information on the remains an instrument for recruiting loyal political party members, respective projects is not available. Moreover, the project implemented while the human resource management departments are understaffed. at the General Secretariat should result in the development of a new “Strategy on Public Administration Modernization”, and revise the Therefore, the following recommendations need to be “Strategy on Cooperation with the Non-Governmental Organizations” – implemented: two documents of key importance in the public administration reform. • To ensure proper enforcement of the Law on Civil Servants and It should be noted that the EU Mission in Macedonia must assume eliminate the possibility to obtain the status of civil servant part of the responsibility, as it is obliged to support the efforts of the pursuant to Article 17-k; implementing parties but also achieve appropriate level of visibility of • To open a public and broad debate, including all stakeholders the project activities and outcomes. (in particular, the trade unions), as regards the provisions and enforcement of the new Law on Public Servants. Amend the law and eliminate the weaknesses and inconsistencies identified therein;

60 Analysis

• To immediately determine the exact number of public servants in practice is for states and local authorities to financially assist and Macedonia, giving separate figures for full-time public servants support the enterprises providing such services. Services of general and people employed through Temporary Employment Agencies interest include: public transportation, electricity, telecommunications, in state administration bodies and in public services (education, communal services (water supply, public lightening, public area health care, culture, science, labour and social works, institutions, maintenance, waste management etc.), broadcasting services, social funds, agencies, public enterprises) who are not governed by the housing, road maintenance, healthcare and other services. Law on Civil Servants;. Services of general interest in the Republic of Macedonia are provided • To undertake a chapter-based analysis and identify what Macedonia by public enterprises (hereinafter: PE), established by the central and needs to deliver in each chapter separately. This analysis should local authorities115. General knowledge is that public enterprises in serve as the basis for preparations for opening EU accession Macedonia offer low quality and high price services, operate with losses negotiations, including the development of position papers. Only for years, fail to invest in new technologies and human resources, then will we have a clear understanding of the staff required in in other words, they are poorly managed. But, due to the nature of state administration; activities they perform, the state – with state and/or municipal funds - allocates significant funds/subsidies for these enterprises to secure • To stop recruiting through Temporary Employment Agencies for quality and timely service for citizens at acceptable and cost-effective public services; prices. On several occasions in the past, the state wrote-off debts of • To secure transparency and accessibility of information related different public enterprises or transformed debts into state bonds to to projects implemented with IPA funds in the Republic of secure smooth performance of public interest service. Recently, the law Macedonia; on re-programming the debts incurred on the basis of VAT, profit tax and 116 • All state administration bodies to fulfil their legal obligations and personal income tax was adopted. Some public enterprises have been undertake performance assessment of civil servants and submit the resuscitated with public money much too long, without conditioning assessment reports to CSA within the shortest period possible. the assistance with implementation of specific plans and measures aimed to financial consolidate and ensure long-term solvency. 7. PUBLIC ENTERPRISES - PUBLIC PETS Certain economic activities are of great importance for the quality 115 Article 1, Law on Public Enterprises, “Official Gazette Republic of Macedonia“ of life for citizens, and therefore treated as services of public or general No..38/1996; 9/1997; 6/2002; 40/2003; 49/2006; 22/2007 and 83/2009 116 interest. By providing quality services of public interest, the state Law on re-programming tax debts of public enterprises and companies established by the Republic of Macedonia, or by the municiopalities or the City of Skopje from stimulates the competitiveness of its economy. Generally accepted 9.02.2010, “Official Gazette of the Republic of Macedonia” No.18/2010.

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In conditions when public enterprises are subordinate and 7.1. Managers Come and Go submissiveness to the authorities, it is difficult for a PE to be managed autonomously, independently and without the interference of the Previous experience in independent Macedonia shows that with the authorities. Therefore, adherent enforcement of the law governing the change of government, PE management, executive and supervisory field of these undertakings becomes pivotal. Only rigid law enforcement bodies change as well. Moreover, no attempts are made to disguise can “repudiate” the pressures from the political elite and other groups such dealings and politicisation of PE is accepted as a matter-of-fact. of interests and centres of power. This implies strong, professional In addition, political party animosities are deeply rooted in society so and expert state administration bodies, but also of principle-driven, that the central government, especially in the last few years, treats local professional and independent individuals. PE unequally when they are managed by the opposition. In conditions of utter political divides on all possible fields and levels in power, PE Reality however is quite the opposite. PE are subject to frequent become collateral damage that is ultimately paid by the citizens. criticism on suspicious ventures, unprofessional conduct, abuse of official authority, and manipulation of public procurements117. Public In the past 17 years, every change of government inevitably changed enterprises are often used by the political parties as the battle field for the destiny of PE with the appointment of the new management, political games and political party employments, which in most cases executive and supervisory bodies. Thus, some of the most successful leads to overemployment on the detriment of the qualified staff in the and example-setting enterprises become insolvent, while insolvent ones enterprises. sink into even greater debts. Amazingly, not a single management ever was held accountable for the poor, irrational management of public This leads us to the conclusion that such dealings go around in a sector enterprises. Instead, many political party obedient followers are vicious circle, but let’s explain things as they unfold. promoted to higher levels, whereby from managers of smaller PE became managers of bigger and more powerful enterprises, and sometimes even councillors, state secretaries, and ministers. The most recent examples of “necessary” changes in PE management are the newly appointed managers of public enterprises in the City of 117 Public procurements of, for example City of Skopje, municipalities and enterprises are Skopje: PE Communal Hygiene, PE Drisla (landfill), PTE Skopje and PE just one of the ways in which the founders of PE re-distribute public funds in an utterly 118 speculative, non-transparent manner. Proof thereof is the most recent scandal related Streets and Roads , made by the Mayor of the City of Skopje. Shortly to the public procurements of the public enterprises. Analyses on public procurement afterwards, the managers of PE City Parking and PE Water Supply and procedures can be found in the Quarterly and Annual Public Procurement Monitoring Reports implemented and published by the Center for Civil Communications on the following website: http://www.ccc.org.mk/index.php?option=com_content&view=art icle&id=52&Itemid=7&lang=mk 118 http://vesti.alfa.mk/default.aspx?mid=36&eventid=21862

62 Analysis

Sewage119 were also changed. According to the law, PE managers are most cases, the newly appointed mangers need to deal with a difficult selected on an open call that defines the terms and conditions to be met situation (often disastrous), and their term of office does not result in by potential candidates, as published in the daily newspapers120. The changes for the better, but for the worse. Year after year, PE financial recent appointments of PE managers in the City of Skopje demonstrated losses grow together with their operational costs (mostly due to that politics has the final and decisive say in the selection process. newly employed political party members) in spite of overemployment, Notably, before the publication of the open call for new managers, and due to other misuses of PE property and assets for the benefit unofficial political party bargains were made, followed by the public of the political party (for example, election campaigns). Investments and official publication of the candidates who won the open call. Such in upgrading or maintenance of the enterprises are practically non- was the example with the managers of PE Communal Hygiene (Rakip existent. Subsequently, many PE, in particular on local level, are in Doci) and PE City Parking (Pance Stojanovski). The initial speculations distress and unable to perform the activity they were established for proved to be true121. Therefore, the attempt to apply on such open calls without enormous financial support from the state or municipal budget. is fruitless as the selection is already made prior to the publication of A typical example is the PE MRTV, whose financial status is difficult to the open call. determine, just as difficult as the size of the state budget injections invested in the enterprise to maintain its status quo. As a reminder - during the last elections, the Macedonian Public Broadcaster broadly 7.2. Political Parties Responsible for the advertised the current ruling parties, and the governmental projects, Demise of PE programmes and “achievements” – free of charge, of course.

Surprisingly, PE management changes, most often, happen due In the last period PE founders failed to take measures to change the to the expiration of the term of office or (rarely) due to determined operations and outputs of PE, which is quite disappointing. Founders are irregularities in the PE operations. The results achieved by the to a large extent responsible for the distressed status of PE, especially managers dismissed or the measures taken to determine accountability since PE directors are obliged to submit semi-annual reports123. Should and impose sanctions for bad performance are never discussed. The the report identify certain shortcomings and/or losses in the work single (legal) solution in the cases of unprofessional conduct and poor of the enterprise, the manager is obliged to eliminate them within a management is the motion to change the PE manager122. Hence, in period of 6 months124. In the case shortcomings and/or losses are not eliminated, the Executive Board or the Mayor is obliged to dismiss the 119 http://www.time.mk/read/1be084ba9a/9b1f1f7093/index.html 120 Article 19-a of the Law on Public Enterprises, “Official Gazette Republic of Macedonia“ of Macedonia“ No. 38/1996; 9/1997; 6/2002; 40/2003; 49/2006; 22/2007 and No.38/1996; 9/1997; 6/2002; 40/2003; 49/2006; 22/2007 and 83/2009 83/2009. 121 See Utrinski Vesnik from 15th September 2009 123 Article 23-a, Paragraph 1 of the Law on Public Enterprises. 122 Article 24-a, Paragraph 1, Law on Public Enterprises, “Official Gazette Republic 124 Article 23-a, Paragraph 3 of the Law on Public Enterprises.

63 Sixth quarterly Accession Watch report manager125. In addition, the Supervisory Board is established to monitor plans, respect for citizens’ needs and due acknowledgement of priorities financial operations, adopt annual balances and financial reports and financial possibilities of PEs, but also of municipalities and/or the submitted by the manager and provide its opinion to the Executive state, and sometime in violation of the law128, PE were transformed into Board and the Minister of Finance (or possibly the line minister)126. executors of Government’s ideas and concepts. Examples of such weird Previous practice does not include cases where PE management and synergy include the projects on reconstruction of the oversized city executive bodies, as well as the founders (be that the state or the stadium in Skopje and its transformation into the “National Arena Fillip municipalities) acted pursuant to the law and dismissed a director on II”, which costs the same as the construction of a new ultra-modern the grounds of failure to fulfil his/her duties. Moreover, there are no stadium for the World Football Cup; the multi-level parking lots project cases where a manager was prosecuted on the grounds of abusing his/ that cost as the most expensive hotel chains that will ultimately end her position, public funds or for taking other actions detrimental to the up as commercial buildings owned by the ruling elite; city beaches respective public enterprise. The only explanation for such behaviour that stink of corruption and abuse of public funds, “tree-days” with an is the lack of political will, and the interests in maintaining the status unknown number of trees planted and unknown procurement costs to quo of the PE in light of pursuing political goals on the detriment of PE the state (read citizens), and many other projects, both on local and itself. This is how the Government tacitly corroborates the demise of central level. PE. The only solution offered in conditions when it becomes clear that Consequently, the following issues are raised: 1. Where does the the situation is unsustainable is a new increase of prices for services money to invest in such expensive projects come from which inter alia provided, justified with “economic reasons” and, of course, the dealings do not imply income generation, but rather high maintenance for the and wheelings of the “previous management”. Again, the price for the PE already indebted and insolvent that the state needs to write-off carelessness is paid by the citizens, one way or another. their tax liabilities to rescue them; and 2. Are such megalomaniac In some cases, the close dealings between the ruling political elite projects, in times of deep economic crisis, and in conditions of and the PE managers are so entangled that the PEs become branches of perpetual shortage of public finances (both central and local budgets) the ruling party, while “public” managers, executors of political party programmes (read interests)127. In the past four years we have seen 128 Best example is the Project “Skopje 2014” whose implementation was initiated outside the law as confirmed by the Constitutional Court of the Republic of political party projects disguised as PE projects. Without any long-term Macedonia. The statement of Mayor of Skopje given in the interview for “Dnevnik” on the “cooperation” between the City, the Government and the political party is self- 125 Artile 19 and Article 24-a, Paragaraph 2 of the Law. emplanatory: “Boulevard Ilinden is an example. The tender was announced and the contractor was selected for a project that contradicted the detailed and general urban 126 Article 27 of the Law. plans. In cooperation with the Municipality of Centar and the Ministry of Transport 127 An example for such a statement is the interview of the Mayor of Skopje, Koce and Communications however, we managed to acquire approrpaite urban planning Trajanovski, for “Dnevnik” from 3rd July 2010, where he identifies the City, the documents and start the construction. Otherwise, it would have been impossoble to Government and the public enterprises as one. do so “.

64 Analysis considered to be value for money in addressing the actual needs of for Management of Residential and Business Property (hereinafter: citizens, the sole reason for their establishment; and 3. Who will take PEMRBP). In his property declaration, Bahcovanovski disclosed his responsibility for the prodigal use of taxpayer money and the inability additional source of income in the amount of 20,000.00 MKD for the of PE to settle their liabilities towards the state and trustees, when office “elected member of the Council of the City of Skopje”130. Since instead of investing in future development they invest in the image of his name was not included in the SCPC communication on officials the Government? who did not comply with the legal obligation to disclose conflict of interests, it is logical to assume that the manager already submitted such a declaration131. The fact that Bahcovanovski believes that he 7.3. Conflict of Interest - Party breaker has no conflict of interests, and thereby does not acknowledge the need to renounce any of the public offices accumulated132, although Another piece of evidence in support of the dominance of the the new SCPC President, Ilmi Selmani, in an interview for A1 TV government over PE is the human resource policies therein. Notably, asserted that “undoubtedly it is a matter of conflict of interests“133 is in addition to the appointment of political party staff as PE managers, quite concerning. To put things into perspective as regards conflict of members of executive or supervisory boards and PE employees, in interests, we consulted the Law on Public Enterprises („Official Gazette recent years the accumulation of offices and concentration of power of the Republic of Macedonia” No. 38/1996; 9/1997; 6/2002; 40/2003; in the hands of one and the same people instead of qualified and 49/2006; 22/2007 and 83/2009). Article 23 of the Law specifies: “in experienced professionals is common practice. The State Commission regard to public enterprises established by the municipality or the City for Prevention of Corruption (SCPC) ignored this fact and has failed to of Skopje, the manager or member of the supervisory board at public take legal measures for a very long time. Such violation of the law is enterprises shall not be concurrent with the public offices Member probably due to the fact that the recently replaced President of SCPC of Parliament of the Republic of Macedonia or President or Member of was also accumulating 4 public offices, which was duly reported in our the Government of the Republic of Macedonia, as well as Member of the previous Quarterly Accession Watch Reports129. As a result of the public (and media) pressure, President Dimovska in her third term of office 130 http://www.dksk.org.mk/imoti_new/detail.php?detail=2438&search=&ime=%D0%B2 %D0%BB%D0%B0%D0%B4%D0%B8%D0%BC%D0%B8%D1%80&prezime=%D0%B1% was finally dismissed from the public office, but not held accountable D0%B0%D1%85%D1%87%D0%BE%D0%B2%D0%B0%D0%BD%D0%BE%D0%B2%D1% for failing act and enforce the law. Another illustrative example on 81%D0%BA%D0%B8&funkcija=&institucija= conflict of interests is Vladimir Bahcovanovski, who serves his second 131 SCPS Communication from 24.06.2010 http://www.dksk.org.mk/index. term of office at the Council of the City of Skopje, but was also initially php?option=com_content&task=view&id=199&Itemid=1 manager of PE Macedonian Forests and then of the Public Enterprise 132 Statement for A1 TV from 29.06.2010 http://www.a1.com.mk/vesti/default. aspx?VestID=124786 129 First Accession Watch Report, “The Government Should Work 24/7 on the EU-Agenda”, 133 Statement for A1 TV from 29.06.2010 http://www.a1.com.mk/vesti/video. April 2009, pg 38. asp?Video=10/saska-29-06.wmv&VestID=124786

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Council or mayor of the municipality or the City of Skopje”. of monthly instalments in the next 10 (+3) years. The issue is whether by that time the law will be amended or other laws will be adopted in As part of its National Programme on Prevention of Conflict of favour of public enterprises. Until then, we will continue the attempts Interests, SCPC clearly identifies the areas considered liable to risks to obtain information on the total amount of re-programmed debts from conflict of interests. The first on the list is “accumulation of public and written-off interest of public enterprises (from February 2010). offices and pursuit of personal gains”, followed by the recommendation: As a reminder: according to the information provided by some MPs, “during his or her term of office, the public officer shall not perform the amount concerned is approximately 50 million EUR136, while the any other office or activity that is considered incompatible with the Mayor in an interview for the daily “Dnevnik” confirms that public public office. This means that the person in question cannot perform enterprises in Skopje had accrued debts in an amount exceeding any other activity related to personal gains134. This means that even 16 million EUR - 10 of which were written-off interest rates and 6 in the absence of conflict of interests, Bahcovanovski has conflicting million EUR re-programmed – hoping that that will “mobilize” the interests because of the ”personal gains” stemming from accumulated enterprises137. According to the FOI answers obtained, the debts of offices. the four large public enterprises (PTE Skopje, PE Macedonian Forests, PE Communal Hygiene and PE Macedonian Railways – Infrastructure) 7.4. Transparency in the Macedonian Way accounts for 80,300,000.00 EUR. The Public Enterprise for Management of Residential and Business Property (hereinafter: PEMRBP), PE MRT A few months ago, the law on re-programming the tax debts of Skopje and PE Macedonian Roads, five months from the submission of public enterprises was adopted. The law provoked many public dilemmas FOI applications have not provided answers thereto (PE MRT Skopje and disconcerts, in particular by businessmen. The protectionist and and PE Macedonian Roads) or have rejected access to the requested patronage policy on PE, detrimental to the private sector, is harshly information on the grounds of business secrets (PEMRBP). Article 8 of judged, since it undermines the pillars of market economy and questions the Law on Public Enterprises stipulates that: “The public enterprise market forces and free competition. This topic was addressed in the and undertaking performing an activity of public interest shall provide Fifth Quarterly Accession Watch Report135. continuous and smooth performance of the activity in question and its operation shall be public and transparent.” Transparency and publicity The possibility to service debts in instalments and the write-off also implies to the financial dealings between the authorities of central, interest rates on debts is conditioned with regular and duly settlement 136 Report from the meeting of the Parlamentary Committee on Local Self-Government No. 134 Quotation from the “Guidelines for Managing Conflict of Interest”, State Commission 27-329 from 4th February 2010 and the Report of the meeting of the Committee on for Prevention of Corruption, Skopje, September 2008, pg. 10 Budget and Finances No. 13-350 from 2nd February 2010. 135 “Who needs a Parliament?”, fifth quarterly accession watch report, Skopje, April 2010, 137 Interview with Koce Trajanovski for “Dnevnik”, available at: http://www.dnevnik.com. pg. 57-66 mk/?itemID=B9940C018DCDF8419A2B93A41E4FB755&arc=1

66 Analysis municipal or City of Skopje level, including the public enterprises and appeal submitted, access to the information requested was finally undertakings performing a public interest activity. Pursuant to Article rejected by means of a Decision142. In its decision, PRO explains that 8-b, PE are obliged to disclose: “a) funds made directly available to the the requested information is exempted from free access to public authorities listed in Paragraph 1 for public enterprises or undertakings information since the interests protected by the information “are performing a public interest activity; b) funds made indirectly available likely to be negatively affected if disclosed”. The decision was taken to the authorities referred to in Paragraph 1 for public enterprises, funds by “weighting the detrimental consequences against the public interest or financial institutions; and c) the manner of disbursement manner and that might be achieved with the information disclosure, which is the purpose of the funds referred to in items a) and b) of this Paragraph”. key element”. Obviously, PRO assessed that the damage inflicted from public disclosure of the information of how much the law on debts re- Financial transparency, inter alia, is applied in the following cases: programming will cost the public overrides the right of the public to “a) settlement of operational losses; [... ], c) grant or loans under know how their money is spent. favourable conditions; d) provision of financial incentives by declining collection of receivables; [...], f) compensation of financial burdens imposed by state authorities“138. In order to provide transparency in 7.5. Public Enterprises and European Integration cases of state aid approval, the enterprises are obliged to keep separate accounting records. As part of the political criteria, specifically in the fight against “Transparent” is also the Ministry of Finance139. Five months from corruption and organized crime, the Accession Partnership sets two 143 the FOI application submitted, the ministry declared itself non- short-term priorities whose fulfilment is assessed against three competent since it “did not dispose with the information requested”140 indicators from the Review 2010. One of the indicators reads “effective and forwarded the FOI application to the Public Revenue Office implementation of the Law on Conflict of Interest and (...) establishing (hereinafter: PRO), which initially141 responded with a letter that the a sustained track record of verified and eliminated conflicts of interests 144 requested information was considered a tax secret, whereas after the “ . The authorities, i.e., public office holders with conflict of interests are not only ignoring the law, but also preventing the implementation

138 Article 8-b, Paragraph 2 of the Law. 142 Decision on rejecting access to public information on the FOI application No.12- 139 Brief No. 19-6046/6 from 25.06.2010, Government of the Republic of Macedonia, 2791/1 from 7.04.2010, Republic of Macedonia, Ministry of Finance, Public Revenue Ministry of Finance Office. 140 This poses the following question - How can the MOF plan budget revenue and 143 Key priority 1: Establish a sustained track record on implementation of anti-corruption expenditure without the “information requested”, considering the significantly high legislation and implementation of the State Anti-Corruption Programme and key amount that could seriously implicate budget revenue/expenditure? priority 2: Ensure proper follow-up of recommendations issued by supervisory bodies, 141 FOI response to the application No.12-15152/2 from 25.02.2010, Republic of in particular in the field of political party financing and public spending. Macedonia, Ministry of Finance, Public Revenue Office 144 Review to the Accession Partnership, 5 February 2010, pg. 3-4

67 Sixth quarterly Accession Watch report of the law by reducing SCPC’s budget with the last budget adjustment145. The manipulations of the Government with the amendments to the The indicator for the second priority demands: “ensure follow-up of the law are contrary to the priority that requires increased quality of public recommendations of the SAO and the SCPC related to public spending and spending. The need to disguise the actual public debt (including the securing full transparency of public spending, especially for state advertising debts of public enterprises) and the actual budget deficit is more than and sanction detected irregularities“. Obviously, the Government, the obvious. It is difficult to hide a bankrupt State as it is reflected on the Mayors, and in particular the public enterprises such as MRTV, MEPSO and local level as well, and the consequences of excessive spending will ELEM are not informed on their obligations related to the EU integration impact the public enterprises. process. In the part referring to the economic criteria, the Review to the 7.6. Conclusions and Recommendations Accession Partnership anticipates: “accountability in the performance of public service” as addressed in three key priorities and 11 indicators146. The government’s attitude towards public enterprises demonstrates Most of them concern the operation of PE and no analyses are needed to the extent and manner in which reforms anticipated in 2007 and determine that most of them remain unfulfilled. This primarily refers to underlined in the Review to the Accession Partnership from 5th February the obligation on enhanced transparency of public procurements, notably 2010 are implemented. The treatment of European priorities, which by aligning national legislation with the EU acquis (in particular on public condition the positive Progress Report for the Republic of Macedonia services, concessions, public-private partnerships and legal remedies). in November, was already addressed in the previous Accession Watch Recent draft amendments to the Law on Public Procurements provide Report. Three months later, when the timeframe for fulfilling the the opposite, i.e., lower transparency in public procurements, notably benchmarks is shorter and tasks more pressing, the best we can do is by allowing misuse of the clause on payment deadlines. This change in reiterate the fact that the Government is not only failing to implement the law will enable the authorities to abuse public enterprises as they European priorities, but is taking the country dangerously further can implement public procurements for the benefit of government’s away. marketing, although not included in the PE public procurement funds and plans. Payables will eventually mature, but will yet again be paid by the True is the fact that some PE are in dismay due to their low citizens147. collection rates (like the utilities) or because of the discontinued financial injections from their respective founders (for example, PTE 145 This information was presented by the President of the SCPC in the interview for the weekly Skopje), which are necessary to cover the difference between service “Fokus”, No. 783 from 2nd July 2010. price and ticket price of the public transportation enterprise, but most 146 Review to the Accession Partnership, 5 February 2010, pg.7-8. PE are overstaffed, overspending and prone to criminal undertakings. 147 Expert and public reactions related to the adoption of the law are not calming down. This can PE managements and central and local authorities are obliged to design be confirmed with the information from the last two weeks. See: http://www.nabu.com.mk /?search=+zakon+za+javni+nabavki&x=0&y=0&hl=mk&dosearch=true&extra=&vreme=w ways to overcome this situation by introducing thorough changes in 68 Analysis

PE management, otherwise these enterprises are not fulfilling the • Management contracts must be respected – once the managers purpose they were established – to secure services of public interest are appointed in the manner specified above, development and improve the quality of life for citizens. Whose interests are given programmes and plans must be implemented and properly priority – public interests or interests of the ruling party? reflected in management contracts signed with the founder of the respective enterprise. This will oblige managers to duly and For Macedonian authorities to be able to demonstrate that European fully perform the responsibilities stipulated in the contract by integration process is a priority, and that they fully understand and assuming material, criminal and moral responsibility for failure, accept the commitments assumed by working on the fulfilment of the i.e., by introducing the reward and carrier advancement system for priorities in light of obtaining a date to open accession negotiations successful performance; and duly prepare the public sector for EU membership, we propose the following: • Transparency and accountability must be pursued – one of the key preconditions and assumptions for the fulfilment of the • Unconditioned subsidies must stop – due to the role of public above recommendations includes transparency and accountability, enterprises and their importance in the contemporary urban life, as principles of good governance in the following actions: 1. the need for the state to design ways to assist their operation management appointment; 2. adoption of development strategies and contribute to improving the quality of services offered and plans, prepared with stakeholder analysis and broad is indisputable. Nevertheless, subsidies from local or central consultation process with citizens; 3. financial follow-up of plans authorities should not be disbursed without proper objectives and developed; and 4. monitoring and evaluation of results achieved; purposes, and they must be conditioned. PE management must be interested or obliged to use funds disbursed in a cost-effective • Market liberalization and new entrants – immediately initiate manner; market liberalization (by eliminating the barriers thereto) that would allow easy and fast entry of new entities on the public • Introduce clear selection criteria for PE managers – management service market (where economically and socially justifiable and must be independent in its work. This can be achieved by possible) for sustainable, reliable economic operators with relevant transparent appointment of managers and members of executive experience in the given field; and supervisory boards. PE management selection criteria must be clear, competitive and adherently applied. Experienced and • Public-private-partnerships and concessions – one of the qualified professionals should be appointed to key management possible remedies for public enterprises’ current state of affairs is positions, on the basis of PE development plans. The appointment public-private partnerships (PPP). Fresh capital and establishment of political party members must stop; of new market-based conditions will contribute to changed code of conduct and operation at PE, as well as the conditions and

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quality of the services delivered. This will inevitably lead to the last 17 years is firmly set at above 30%151. Notably, by 30th April introduction of new and state-of-art technologies and experience 2010, 339,222 people were unemployed in total152, and 79.4% of them from other countries for the benefit of all parties concerned, but have been waiting for employment for more than 1 year; 49.1% have primarily for the benefit of citizens. low qualifications; 39% belong to the age range 15-34 years, while 101,182 people (almost 30%) have been waiting for employment for 8 8. PRAISE OF FOLLY or more years; 24.1% (81,891 people) have secondary education and 7.6% (around 26,000 people) have college or university degrees. The priorities in the Review 2010 are related to the Copenhagen economic criteria that Macedonia must fulfil in preparation for EU In comparison, by 30th April 2010, the total number of unemployed membership. It implies reduced impediment to job-creation with in EU-27 accounted for 10.1%153. The highest unemployment rate was special emphasis on youth and long-term unemployed, monitored recorded in Latvia – 22.5%, while the total number of employed in against the following 3 indicators: 1) efficient implementation of 2009 accounted for 64.6%154 and 58.6% for women. The Macedonian active employment measures to reduce unemployment of youth and case is quite different. Notably, the employment rate in Macedonia increase the number of people involved compared to 2009 and redesign in 2009 accounted for 38.4%155 and the employment rate of women measures to meet labour market needs; 2) continue to implement Life- in 2008 was 28.2%, which is much below the figures of EU Member- Long Learning; and 3) start implementing the Vocational Education and States, and approximately 10% less than anticipated156. Training Plan, appropriately reflecting labour market needs and creating more employment opportunities. According to the Government: “Macedonia is a country of equal opportunities for all”148, and “although Macedonian economy faces economic challenges, the social sphere is marked by positive 151 http://www.nbrm.gov.mk/?ItemID=750FC531FC3D1B49B16440313562D400 149 achievements“ , while “the macro-economic parameters and the 152 http://www.mtsp.gov.mk/?ItemID=B18F3390FCA6AC46B301792947033615 150 general economy in Macedonia are stable ...” . The only thing stable 153 http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&language=en&pcode=teilm02 however, is the astoundingly high unemployment rate, which in the 0&tableSelection=1&plugin=1 154 http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&language=en&pcode=tsiem01 0&tableSelection=1&footnotes=yes&labeling=labels&plugin=1 148 VMRO-DPMNE Programme “Rebirth in 100 Steps – Expanded and Upgraded”, www.vmro- 155 http://www.stat.gov.mk/statistiki.asp?ss=07.01&rbs=1 dpmne.org.mk 156 National Employment Strategy – 2010, Skopje, December 2006, Government of the 149 Information on the implemented activities from the National Programme on Approximation Republic of Macedonia (pg. 6). Goals: general employment rate of 48%; employment rate with the Acquis, Review 2010 (for the period 01.01.2010 – 31.03.2010), pg. 10. for women 38% by 2010; and employment rate for older workers (55-64 years) of 33% by 150 http://www.vlada.mk/?q=node/5491 2010 г. http://www.mtsp.gov.mk/WBStorage/Files/strategija.pdf

70 Analysis

8.1. Where Are the Employed? 8.2. Less Funds for Employment

The number of unemployed in Macedonia was apparently reduced by Funds allocated for active employment measures as anticipated 10,567 in the course of one year (30th April 2009 – 30th April 2010), in the Operational Plan 2008 (hereinafter: OP) were increased by the categories being as follows: highest reduction was registered with 365.5 million MKD compared to OP 2007, while OP 2009 anticipated people waiting employment for 2 years (8,110 people), followed by an increase of 131.8 million MKD. The scope of active employment the unqualified (5,914) and the unemployed from the age range of 25- measures was increased from 8,300 in OP 2007 to almost 14,000 in OP 34 years (5,192). Unemployment was reduced by 5,114 people in the 2009. The number of active employment measures also increased in group of unemployed at the age range of 35-49 years; by 3,589 with 2008 and 2009, respectively. But then, with no explanation whatsoever, those awaiting employment for 8 or more years; by 3,077 with young OP 2010 dramatically decreased both scope and funds, cutting by half people at the age of 15-24 years and by 2,000 for unemployed with the number of beneficiaries (only 6,947) and reducing the funds by completed secondary education. On the other hand, the number of 298.2 million MKD compared to OP 2009, and now account for 526.8 unemployed at the age of 50 and more years was increased by almost million MKD. 2,000 people, and by 1,000 people in the category of unemployed with completed college or university education. Table 1: Operational Plans with active employment measures 2007 The conclusion is that the profile of unemployed most likely to find - 2010 job in Macedonia is a male, at the age of 34 years, without completed secondary education, awaiting employment for 2 years. Of course, the Operational Operational Operational Operational Plan profile does not include the members of the ruling political party whose Plan 20071 Plan 2008*2 Plan 20104 employment does not respect any rules or logic. If that is the case, then 2009**3 where are the 10,567 people employed, bearing in mind that 2009 was Scope 8,300 9,200 13,929 6,947 a recession year marked by dramatic fall of industrial output?157 Does Funds (in that mean that the overly engaged construction industry managed to million 297.7 663.2 795 526.8 transform the labour market and thereby the entire economy? MKD) *Operational Plan 2008 and Employment Programme ** Operational Plan amending the Operational Plan 2009

157“ Optimism Waits for the Fall”, Vreme, Thursday, 6th May 2010, pg. 24.

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Table 2 shows that most active measures in OP 2010 are identical to the ones anticipated in OP 2009. Two new active measures were introduced, targeting 50 and 30 unemployed persons respectively, with allocation of 4.6 million MKD. The two new measures insignificantly redesign the Operational Plan and anticipate meaningless unemployment reduction. Table 2: Operational Plan with active employment measures 2010

Funds (in Increase/decrease compared to OP 2009

Scope million Increase/ Funds (in Programmes and measures Beneficiaries MKD) decrease mil. MKD) 1 Self-employment 700 147.5 Increase 100 19.9 2 Registration of existing businesses 250 47.0 No changes Pilot programme – support for additional employment at existing companies 3 up to 50 4.6 New measure registered as a result of self-employment measures in 2007 and 2008 Promotion of entrepreneurship through the existing business incubators and 4 30 0.3 New measure training on certain professions and skills deemed to be lacking on the labour market 5 Employment Preparation Programme 4,291 37.7 Increase 599 16.1 6 Employment subsidies 1,241 264.6 Decrease 439 74.3 7 Internship Programme 150 2.2 Decrease 500 16.1 8 Vacancy surveying 60 0.3 Decrease 30 0.4 Economic empowerment of women – 9 125 17.4 17.5 victims of domestic violence 10 Employment support for Roma 50 3.0 Decrease 150 1.7 Open calls and announcements 2.0 Decrease 5.0 TOTAL 6,947 526.8 Decrease 6,982 298.2

72 Analysis

OP 2010 increases the scope of unemployed and funds available 8.3. Laconic Government for self-employment and employment preparation by 100 and 599 respectively, and by almost 20 million MKD and 16 million MKD The website of the Ministry of Labour and Social Policy (hereinafter: respectively. The relevant scope and funds for the other four measures MLSP)160 hosts 10 documents related to labour relations and employment, however are decreased and include 1,119 less i.e., 110 million MKD less but there are no analyses or evaluations. Therefore, it is unclear how compared to the same four active measures in OP 2009 (see measures the Government developed the new operational programmes. Although 6, 7, 8 and 9 in Table 2). OP 2010 does not include the measure each operational programme emphasizes that: “at the end of the “organizing public activities”, which in OP 2009 targeted as high as year the final report will be developed and include an evaluation of all 5,000 unemployed and was allocated around 229 million MKD. Why was programmes/measures, as well as an analysis and proposals for changes this measure removed from OP 2010 when one of the main objectives to be made the following year”161, they are either not available for the given in the governmental programmes concerning job creation states public or do not exist at all. that “the road to re-integration of the labour market by means of public In the absence of official interpretation on the success (or failure) activities...“158? achieved by OP measures, one must resort to other documents. UNDP For a period of 4 years, OP 2007-2010 anticipate 2,283 billion analysis162 (2007-2009) states that in 2007 from the total of 559 MKD targeting the employment of 38,376 unemployed from different companies established on the principle of self-employment, only 61% categories. 1,756 billion MKD were planned for the period 2007-2009 survived the first year, while 21% became inactive after one year of (without OP 2010) targeting the employment of 31,429 people. In the operation and 18% were deleted from the Central Registry and no longer same period (31.12.2006 – 31.12.2009), the number of unemployed exist as legal entities. Experts indicate that self-employment projects reduced by 25,256 people159. Why did the Government, in spite of are good and functional in different countries, but the reasons for their not meeting the target number, decide to save funds in this sector, non-sustainability in Macedonia lies in the poor economic situation, knowing that the implementation of active employment measures is which is especially unfavourable for small businesses. According to the subject to assessment in the EC Progress Report? OP 2010 decreases Employment Agency, the 60% sustained companies make the project the scope by half along with the funds, but also fails to re-design the successful. active employment measures. 160 http://www.mtsp.gov.mk/?ItemID=BD66FCC3A7FBCB47AB9150CBFECD2C96 161 Operational Plan 2008 on active employment programmes and measures (pg. 18), 2009 Operational Plan on active employment programmes and measures (pg. 31), 2009 Operational plan on active employment programmes and measures (pg. 27) 158 http://www.mtsp.gov.mk/?ItemID=D4907DDA288F7F45A585D25B99BAF9D3 162 http://www.dnevnik.com.mk/default.asp?itemID=98215DA51674114DB3909F910238 159 www.zvrm.gov.mk 7BE1&arc=1

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How the Government fights unemployment can best be seen from 8.4. People and Deeds the programmes posted on MLSP’s website163. Namely, the employment creation programme says that “the programme ...is an ambitious The second indicator against which EC will monitor the progress attempt to implement a series of active measures on the labour market, made in Macedonia is “implementation of Life Long Learning”, which diligently targeting the registered unemployed people in Macedonia...“ falls under the competences of the National Agency for European and specifies the goals: “reintegration of the labour market by means Educational Programmes and Mobility (hereinafter: the National of public activities... and by subsidizing salaries to achieve sustainable Agency)165. employments”. The entire programme is described in 454 words (in The National Agency, 28th April 2010, announced that “the open call Macedonian language) i.e., one page. The project on employment of for the Life-Long Learning Programme for the current 2010 is on the hold young qualified people164 is slightly longer - half a page longer and 7 until further notice or instruction from the European Commission...“166. more words that the programme on employment creation, or a total of Two month earlier, on 22nd February 2010, the heads of the sectors at 461 words (in Macedonian language). The project goal, as given in the the National Agency were so complacent in the open letter addressed document’s introduction, is “to help address the growing unemployment to the public stating that: “We would like to inform the public that the of young people with completed college and university education, with programme funds were not terminated, nor was there such an intention. no working experience, as well as to support development of local All statements claiming otherwise are nothing else but mere lies and economies”. misinformation“167. If these programmes are the instruments used by the Government The information obtained from the National Agency is an indication to reduce unemployment, then Macedonia will need to work for years of the institution’s expertise and capacity168. Notably, according to and years to reduce the high unemployment rate. The publication of the National Agency, a total of 1,326 people attended the Info Days these documents is welcomed, but due care should be given to the fact organized in 2009. Nevertheless, the same information provides the that central government institutions need to serve as a role model and number of attendees per town, whose total is 1,419 people, or almost therefore establish criteria for developing quality projects, plans or 100 people more. programmes, rather than pretending to work 24/7. 165 http://www.na.org.mk/nacionalna-agencia.html 166 Information on the Life-Long Learning Programme from 28.04.2010 12:25 http:// www.na.org.mk/ 167 Open letter to the public from the sector managers at the National Agency, 22.02.2010, www.na.org.mk 168 FOI response submitted by the National Agency For European Educational Programs 163 http://www.mtsp.gov.mk/?ItemID=D4907DDA288F7F45A585D25B99BAF9D3 And Mobility on the application no. 02-374/2 from 09.03.2010 to the Foundation 164 http://www.mtsp.gov.mk/WBStorage/Files/posred.doc Open Society Institute - Macedonia 74 Analysis

The personality and achievements of the new director of the The Rulebook on Operation of the National Agency is very much National Agency are described with one photograph and 12 words on “personalized” and thereby includes the names of employees (Article the website of the institution, where 2 words stand for the personal 7, Article 42, and Article 43). By means of a decision, the director and family name, and 8 for the name of the agency169. Obviously, has appointed a person, whose name and surname are included in the the young director, “green-horn” VMRO-DPMNE staff educated in the Rulebook “who will report on irregularities and allegations on fraud and USA, the country of the freedom of expression, easily adjusted to the corruption” (Article 7)172. Why did this person fail to act on initial governmental Laconian expression. Unlike the director, the Minister of allegations for mismanagement of EU Funds allocated for the EURAXESS Education and Science believes that the European Commission operates Programme, and later (September 2009) for the grants awarded from on the principle “scout’s honour” and stated: “I intend to go to Brussels Life-Long-Learning and Youth in Action Programmes? Did the director by the end of the month and persuade the Europeans that we can manage of the Agency at the time report on the irregularities to the responsible the funds. Will I succeed? I’m not sure”170. Programme Director at the Directorate General on Education and Culture within the European Commission, as stipulated in Article 8 from the In addition to human resource solutions pursued, the quality of Rulebook? internal acts is also indicative of the Agency’s capacity. We submitted FOI applications requesting the National Agency to provide access to Why the former, but also the current management of the National its Rulebooks on 4th March 2010. In its written response, the Agency Agency fail to implement Europass Programme although the job informed us that: “the National Agency does not provide public insight positions are specified in the Rulebook on the Organization and in its internal procedures. Such information is disclosed only to the Operation of the National Agency (Article 12)? This programme provides national authorities and bodies in front of which the institution is held transparency and comparability of skills and qualifications173 acquired accountable”171. Once our appeal was approved, we were presented with by our students. the five Rulebooks, but not the Rulebooks on ERASMUS, EURAXESS, and the Rulebook governing the implementation of Life Long Learning Programme. We were not informed whether these Rulebooks have been developed at all.

172 Rulebook on the organization and operation of the National Agency for European Educational Programmes and Mobility, Skopje, July 2009 169 www.na.org.mk 173 Europass is a portfolio comprised of 5 documents, whose main aim is to present the 170 http://www.novamakedonija.com.mk/NewsDetal.asp?vest=63101027449&id=9&setIz acquired skills and qualifications in a clear manner harmonized throughout Europe. danie=21998 The documents include: Europass CV, Europass language passport, Europass mobility, 171 Written anwers from the National Agency no.. 02-402/1 from 15.03.2010. Europass additional document on studies and Europass diploma supplement.

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8.5. Dirty Dozen Unit unauthorized manuscripts177. VET curriculum is non- conducive to new technologies; schools lack information on innovation in the relevant The Vocational Education and Training Centre (hereinafter: VETC) plays professions, and practical courses are poor and insufficient178, without a central role in fulfilling the third indicator (start the implementation workshops and laboratories and performed on the basis of personal of the Vocational Education and Training Plan, appropriately reflecting acquaintances. labour market needs, and creating more employment opportunities) set VET programme documents do not correspond with the socio- in the Review to the Accession Partnership. economic and social reality in Macedonia and do not follow European “Secondary vocational schools are the pillars of economic development mainstream179. “The cooperation between employers, higher and and only a well-adjusted vocational education and training can work secondary vocational education and training is poor” - say experts, while for the businesses and the overall economic and social development” the department heads at MOES add: “There is no system on vocational stressed the current Minister of Education and Science174. Nevertheless, education and training in the country that will produce qualified staff only a small number of students enrol at vocational schools. Why is on the labour market“4. that? According to the joint evaluation180, the relations between secondary USAID report175 states that “Macedonia is lagging behind other countries and higher education are weak, while curricula are incompatible. from Southeast Europe in regard to the quality of secondary vocational Employers lack information on VET, and students are not acquainted education and training, and thereby fails to provide employment with company work, their future duties, jobs they are qualified for, nor opportunities for its youth”. By 30th April 2010, the number of do they show individual initiatives to learn more about that. unemployed with completed secondary vocational education accounts According to the Law on Vocational Education and Training181, for 81,891 people or 24.1% of the total number of unemployed. VET competences are shared between the Ministry of Education and There are practically no textbooks for vocational education and training. The Minister of Education and Science acknowledged that 177 http://www.mon.gov.mk/index.php?option=com_content&view=article&id=361:2009- from a total of 1,200 subjects, 800-900 have never been covered 12-29-15-04-23&catid=47:novosti&Itemid=108 178 with relevant textbooks176 and that students learn from notes and http://www.dnevnik.com.mk/default.asp?ItemID=C4BAC0D8854D7D438B54D13FCDE7 A1A8 179 http://www.vecer.com.mk/default.asp?ItemID=478B8D115DD3AE4A91CC4EF7938B1C 174 http://www.vecer.com.mk/default.asp?ItemID=478B8D115DD3AE4A91CC4EF7938B1C A3 A3 180 Collaborative evaluation on the effects of the reformed four-year vocational education 175 http://macedonia.usaid.gov/mk/sectors/education/sea.html and training, working document, May 2010 176 http://www.novamakedonija.com.mk/NewsDetal.asp?vest=5281092114&id=9&setIzd 181 Law on Vocational Education and Training, „Official Gazette of the Republic of anie=21993 Macedonia” No. 71/06

76 Analysis

Science and the Ministry of Labour and Social Policy. The sector on qualifications, assessments, certificates, etc. promotion of primary and secondary education182 does not include VET VETC is still located in the old premises within the Clinical Centre in its documents183, but rather provides links to several educational compound in Skopje, although the Government announced that VETC institutions and projects, including the link to the project “Sing in was relocated to new premises (in the MRTV building, 2 floor, 240 Cyrillic”, and there is no link to VETC or the Vocational Education and m2)187. VETC’s website does not host research, analyses, methodologies, Training Council. The situation at the MLSP is not better either – none concepts, standards, catalogues, i.e., does not host documents that of the sectors or departments deals with the promotion of VET, not according to VETC’s Statute should have been developed and publicly even the state advisors. available. There are no analyses on VET, no Education Research and The 2009 Progress Report for the Republic of Macedonia noted that Development Institute, no municipal centres on human resource the programme on mandatory vocational education and training was development, no systematic recognition of former knowledge, no not implemented and that VETC184 was unaware of such programme. links to VET schools in Macedonia or to EU institutions (CEDEFOP188 in According to VETC, reforms took place only in the four-year VET. They Thessaloniki and ETF in Turin). honestly acknowledge their ignorance of labour market needs, as there What the VETC does have however, is the spouse of the former are no relevant analyses, and rely heavily on the assistance from the director of the National Agency, Bosko Nelkoski (who benefited from European Training Foundation (hereinafter: ETF) from Turin185. Activities the funds disbursed in Youth in Action Programme herself), as well to develop the National Qualifications Framework are underway and as Makedonka Dicovska (President of the National Agency’s Executive aim to establish a coherent system of qualifications, whose draft was Board, whose board-members were dismissed by the Government on presented to MOES in January 2010186. The implementation of this the grounds of unethical performance) and the director Zekir Zekiri framework is yet to start with the adoption of relevant secondary (also member of the dismissed Executive Board of the National Agency, legislation prescribing the standards of vocations, sector committees, appointed to this position just weeks after his dismissal)189. Is VETC the 182 http://www.mon.gov.mk/index.php?option=com_content&view=article&id=265&Itemi Government’s “Dirty Dozen Unit” for disgraced and dismissed members d=137 of VMRO-dominated Executive Boards and how can people with such 183 Law on Vocational Education and Training, „Official Gazette of the Republic of Macedonia” credibility be entrusted with VET reforms? No. 71/06 184 Interview with the employees at the Vocational Education and Training Centre (VETC). 187 185 ETF - European Training Foundation – whose mission is to assist the transition and Monthly Progress Brief Accession Partnership, No. 06/2009, Government of the Republic development countries in encouraging human resource potential by means of education of Macedonia, Secretariat for European Affairs. reforms, training and labour market systems in the context of the EU external policy. 188 http://www.cedefop.europa.eu/EN/ European Agency for the development of vocational 186 !Factsheet – Life Long Learning – Technical assistance for the Ministry of Education education and training (VET) and Science on Life-Long-Learning. Number 3. The Project is financed by the European 189http://www.novamakedonija.com.mk/NewsDetal.asp?vest=13010942502&id=9&prilog= Union. 0&setIzdanie=21897 77 Sixth quarterly Accession Watch report

Will the current VETC be able to achieve what the Government has The Republic of Macedonia is acting in opposition of European been promising for the last four years and establish “the system required priorities, while the Government continues to contradict the to keep up with the dynamic developments, to reduce the unemployment commitments specified in the Review 2010. The scope and funds rate and to introduce vocations needed on the labour market“190. intended for active employment measures have been dramatically Regulations need to be amended, the monitoring system for student reduced in OP 2010, while employment measures are not redesigned progress and destination should be established, cooperation between to address labour market needs. Life-Long-Learning Programme is on schools and universities and companies needs to be enhanced, and the standstill, due to the scandalous behaviour of the National Agency, new, integral VET concept should be drafted, while the curricula and and there are no signs that this case will soon be properly resolved. syllabuses should be reviewed (to introduce 67 new vocational profiles VET reforms remain letters on paper, repeated year after year, while the in secondary education, and change 21 profiles in line with higher Government is persistent in announcing the inevitable reforms. education and job positions)191. In order to overcome the situation as regards unemployment, quality of education and building competent institutions to implement 8.6. Conclusions and Recommendations the commitments assumed, we recommend the following: • Operational plans need to focus on the main target groups defined, Education and training are the main components of the objectives notably youth and long unemployed, and not on heterogeneous defined by the Renewed Lisbon Strategy, and they remain high priorities groups and measures; in the Europe 2020 Strategy192, as they must address citizens’ needs, and thereby the needs of labour markets and the society in general193. • Operational programmes should be evaluated and the results According to the Strategy, Life-Long-Learning is the main factor for thereof to be made publicly available; growth, employment and social inclusion. • The Employment Agency of the Republic of Macedonia should publish relevant data on unemployment and employment rates for the past few years, so that stakeholders can use official data when 190 http://www.novamakedonija.com.mk/NewsDetal.asp?vest=5281092114&id=9&setIzd anie=21993 monitoring the progress in this field; 191 http://dnevnik.mk/?ItemID=C4BAC0D8854D7D438B54D13FCDE7A1A8 • Students, local business communities and universities should be 192 EUROPE 2020 - A European strategy for smart, sustainable and inclusive growth - http:// included in curricula development; ec.europa.eu/commission_2010-2014/president/news/documents/pdf/20100303_1_ en.pdf • The capacities of the VETC should be built with human resources 193 Draft 2010 joint progress report of the Council and the Commission on the that are not politicised; implementation of the “Education & Training 2010 work programme” http://eur-lex. europa.eu/LexUriServ/LexUriServ.do?uri=COM:2009:0640:FIN:EN:PDF

78 Analysis

• The capacities of VET-teachers should be built with appropriate training; • Institutional capacity-building should take place as regards Chapter 19 (Social policy and employment) and Chapter 26 (Education and Culture), involving other stakeholders in the working groups established for these chapters.

79 ...III... ur analysis shows that in the reporting period (April-July 2010) the Government of the Republic of Macedonia continued its preparations for Early Elections and is more and more distant from the EU. If in the previous reporting period (January-March) the nameO dispute with Greece was resolved “discretely” – in the opinion of the Minister of Foreign Affairs, Antonio Milosevski - in this reporting period all hopes for a solution thereto evaporated from the national scene, although on the EU Summit in June, the Greek Minister Dimitris Droutsas announced that a solution on the name issue was on the horizon. CONCLUSIONS There are only three months to mid-October, the cut-off date for the EC Progress Report for the Republic of Macedonia. This period does not foresee any important EU event that might encourage the authorities to roll up their sleeves and implement the reforms required. The NATO Summit is scheduled for November, after the publication of the 2010 Progress Report, thus in this period the Government is free to work on its own agenda “100 Steps Away from the EU”, and blame anybody else but itself in the meantime.

80 Conclusions

The Parliament continues to operate as an extended arm of the 1. ODD SURVEY Government, undermining the democratic capacity of the country. The opposition announced that it will request Early Parliamentary In this reporting period, the parliamentary Commission on European Elections after the NATO Summit in November irrespective of its Issues was quite visible, but not in terms of checks-and-balances outcome. Such announcements were welcomed by the ruling VMRO- of the executive, nor in pursuing the European agenda actively, but DPMNE as it expressed its readiness for organizing elections at any rather in defaming civil society organizations that dared criticise the time, if the Parliament votes in favour, of course. Recently, we see Prime Government. Obviously, the Commission was assigned this role in Minister Gruevski with “a shovel in his hands”, thereby promoting the accordance with old-new strategy of the Government. “development-oriented” government and political party. Nevertheless, It is crystal clear that the Government will continue to manipulate the Prime Minister is aware that after four years in power, it will be Macedonia’s strategic interest to open EU accession negotiations, difficult for him to sell the economic rebirth to the public without while trying to find a “legitimate” excuse to terminate negotiations NATO and EU membership. with Greece by shifting the blame to the EU (for expressing solidarity This was also confirmed by the survey commissioned by SEA in for its Member-State), to the international community (for meddling July from the Institute for Political Issus, where the respondents were with our internal affairs), to the opposition (for not caring enough for asked to choose between EU membership and the name of the country. national interest), to the critically-inclined civil society organizations The expert public195 responded to this survey by indicating that it was (for pursue other interests), to the media (for not reporting to the illogical for the two matters to be treated in one and the same question, liking of VMRO-DPMNE), to the “in-country outcasts” (such as Cvetanov, since the support for the name, as a very sensitive issue, will always Gacov…. others will probably follow... for daring to speak open), to be higher that the support for EU membership. Nevertheless, the final the political analysts (for analyzing the dangerous zone of interethnic outcome of this survey proved that there is still high consensus for EU relations) and, finally, to the critically minded citizens (for having the accession, even higher than the results obtained by the Eurobarometer. courage to think with their own heads). The pursuit of this strategy EU representatives also reacted to the survey, indicating the same basic started early this year194, and the pressure will gain in force the more doubts in conducting public opinion surveys. the date for the NATO Summit is approaching. SEA’s survey shook the public and raised the following questions: What was the purpose of the survey and why was SEA ordering the survey? Why was the survey conducted by the Institute for Political Issues? And, finally, why was the public opinion survey conducted now? 194 See the Conclusions from the Fifth Quarterly Accession Watch Report “Who Needs a Parliament?”, April 2010. 195 http://www.utrinski.com.mk/?ItemID=42BB890BB6FB664BB44D2929C6FE6B75

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The first logical purpose of such a survey is for SEA (read: the the survey? In the midst of market competition between the VMRO- Government) to test the public support for EU accession. Such a defined institute “Pavel Satev” and the SDSM-institute “Progress”, and while purpose though opens other issues: Does this mean that the Government the Institute for Democracy, the Institute for Political, Judicial and does not trust Eurobarometer that monitors the public opinion in all EU Sociological Research, Rating, Brima Gallup and other private agencies Member-States and in candidate-countries, or maybe Brima Gallup that and many think-tank organizations dealing with policy-making are conducts detailed surveys for the Western Balkans196? trying to win a share of the research market, the Government decided to entrust this survey to the unknown Institute for Political Issues. Not even Gruevski’s Government would dare to contest the surveys Experts point out to possible manipulations when certain institutes performed by these renowned and credible organizations. Nevertheless, serve the purpose of the client by satisfying its desires in formulating if the Government trusts these surveys, then why is it spending budget the questions or by selecting the survey sample. This explains the funds on surveys to determine something that is already well known selection of the Institute for Political Issues, as not a single reputable at times of financial crisis when arguments are opposed on the issue institution will jeopardise their expertise by putting forward such an of budget adjustment? The answer probably lies in the possible Early ambiguous question. Elections. In the case of Early Parliamentary Elections, VMRO-DPMNE would need a new leitmotif – termination of name negotiations with Maybe the most intriguing question of all is why now. What triggered Greece – because after four years of “rebirth”, the economic policy the Government to research public opinion at this moment, and not two of VMRO-DPMNE did not harvest any real results, while EU and NATO months ago, for instance? Remembering the statements given by the membership are further away and more unlikely. governmental representatives and the international community in the wake of the Stabilization and Association Committee that Macedonia Thus, if we agree that the purpose of the SEA-commissioned survey is not implementing the reforms and that the EC recommendation is was to examine whether VMRO-DPMNE can afford to develop a strategy endangered to the extent that EU might even take away the candidate- for early elections based on the termination of negotiations with country status from Macedonia197 illustrates the predicament of the Greece, then the issue of abuse of budget funds for political party goals ruling party. Obviously, the Government (read: VMRO-DPMNE) awaiting is raised, which – in essence – is an act of corruption and of improper the worst possible news from the EU started to prepare for early functioning of the institutions (Copenhagen political criteria). general elections fully aware that Euro-Atlantic integration cannot be The second question that might shed new light to the Government’s moves is: Why was the Institute for Political Issues selected to conduct 197There is no mechanism for withdrawing the candidate-country status, but the the start of accession negotiations is conditioned with the fulfillment of the Copenhagen 196 Brima Gallup carries out annual research on the state of affairs in the Western Balkans, political criteria. Macedonia had fulfilled the political criteria (to the extent which is later used by the European Commission to design appropriate strategy. This necessary), when it obtained the status of candidate-country in December 2005, but research is thorogh and financed by the European Fund for the Balkans. They are in 2008 managed to spoil the success achieved due to which we were not receive EC’s available at: www.balkan-monitor.eu. recommendation.

82 Conclusions the winning ticket. Therefore, the ruling party needed to test whether the Committee on Inter-ethnic Relations and the National Council for playing the trump card of “national pride” and the bravery of the Prime European Integration must schedule meetings and adopt conclusions Minister who is not “spineless” despite the permanent unjust pressures to be adopted in a plenary session and forwarded to the Government. imposed by the international community will win the early elections. This is necessary in light of consensus building, as a large part of the results are expected to be delivered by the Parliament. 2. WHAT CAN BE DONE BY NOVEMBER The Parliament will have a great deal of work if its goal is to fulfil Fortunately (or unfortunately) the Stabilization and Association the indicators set forward. The most important thing for the Parliament Council confirmed the recommendation for opening accession is to have the Inquiry Committee meeting to discuss the clash in negotiations. Fortunately because it is not too late to deliver the the Parliament from 1st July, adopt conclusions thereof, follow them indicators set in the Review 2010 by the end of October, but unfortunately through and sanction the perpetrators. In no circumstance should this because Prime Minister Gruevski gained an additional 3-month period replicate the previous inquiry committees and look like the discussions to successfully camouflage the real story of Macedonian’s distance from that took place during the motion to censure the Minister of Internal EU. The forthcoming period up to November does not anticipate major Affairs, Gordana Jankulovska. events (committees, councils, or summits), so the Government has The Parliament must immediately re-examine its position as regards time to dedicate its efforts to deliver the indicators set in the Review the State Audit Office and open debates on the findings presented 2010, or to pretend that it is taking the country closer to the EU, just in SAO reports. For that purpose, the 2009 annual report published like it is pretending to negotiate the name dispute with Greece, and in by SAO in July can be used as the starting point for discussing the that process blaming everyone that thinks differently. What will prevail findings within the entities subjected to audit as provided in SAO’s remains to be seen. Annual Programme. It will be of utmost importance to avoid turning the Parliament discussion into an arena for the political parties to 2.1. Successful Review 2010 prove their point. The Parliament should derive conclusions and related recommendations and submit them for the attention of the government If the Government decides to deliver the indicators specified in the along with an appropriate implementation timetable. Review 2010, it must find the strength to fulfil all obligations. First, The Commission on Inter-Ethnic Relations within the Parliament as recommended in the previous Quarterly Accession Watch Report, of the Republic of Macedonia should hold meetings and discuss the the document must be forwarded to all line ministries and other public hot issues in the relations between the ethnic communities in the institutions that are expected to deliver results by October, as well as country. to the Parliament. The parliamentary Committee on European Issues,

83 Sixth quarterly Accession Watch report

The Parliament must request from the political parties, at least those The Government should prepare a information on the state marketing represented therein, to submit their 2009 financial reports. Although expenditure from 2007 up to date, submit it to the Parliament and late, such steps will demonstrate to the EC that the conclusions publish it on its website. from the Stabilization and Association Council were considered and that appropriate action was taken. In a democratic country, it is unacceptable for the law to be applicable for everybody else except for 2.2. Unsuccessful Review 2010 the political parties. Should the Government (read: VMRO-DPMNE) decide to give up the The Stabilization and Association Council obliged the Government EU agenda, it will most probably focus on finding people to blame, to adhere to the law when transforming temporary employments into silence those who think differently, control the media and deepen the full-time permanent employments. In order to exercise checks-and- interethnic gap in Macedonia. In that case, VMRO-DPMNE will try to balances and be fully transparent, as anticipated in the Review 2010, postpone the name negotiations with Greece as much as possible. Of the Parliament should establish an Inquiry Committee that will act course, in the meantime, VMRO-DPMNE will need to find a legitimate as political supervision over the implementation of this procedure, or excuse for the international community (because without the support of can decide to delegate this task to the Parliamentary Committee on the international community, it cannot access financial and development Elections and Appointments. assistance, especially now when the budget is drained), as well as for The State Commission on Prevention of Corruption and the Public the general public (because the citizens have the right to vote). This Prosecution should investigate the accusations raised by Vane Cvetanov, practically means that VMRO-DPMNE will fake the cooperation with and should they fail to do so by mid-September, the Parliament should Greece and mediator Nimitz, who will present a proposal only if he has demand from SCPC to look into the matter. something to offer. The meetings with international high representative will therefore continue as well the statements that the Government is The Parliament should put on its agenda an item in which the Deputy carefully looking into all possibilities, making cooperation seem more Prime Minister of the Government responsible for European Integration, plausible. Vasko Naumovski, will report on the activities delivered from the Review 2010 in front of the MPs, but also in front of other organizations that The domestic story will need to be different so that it can somehow monitor the European integration process and that should be invited explain why Macedonia is regressing in the reform process. During to the meeting and given the right to put forward questions. This is the Early Parliamentary Elections in 2008, Prime Minister Gruevski in line with the indicator on stakeholder participation, as given in blamed the opposition in the Parliament and openly asked for a new the Review 2010, and timely addresses two of the comments from the parliamentary composition where VMRO-DPMNE would have the absolute Stabilization and Association Council. majority thereby eliminating all barriers hindering the reform process in

84 Conclusions the country. This time, most probably, people to blame will be sought already emphasized on several occasions that political disputes cannot everywhere. It would not suffice to pin the failed European reforms to be resolved by legal means. Even if the Court’s ruling is favourable for the opposition only, but the responsibility will be shifted to the non- us – which is just a possibility – and even if Greece accepts such a governmental organizations that criticized the Government, unaware ruling and does not veto our membership in NATO and EU any longer – of the damage they were inflicting on the country when conversing so which is not an obligation since the Court’s rulings are consultative in openly with the international community – as MP Silvana Boneva likes nature – Macedonia will still not be able to accomplish its goal and on to put it. Equally responsible will be the media that publish/broadcast the next EU Summit it might happen for a partner-country of Greece stories that destroy the reputation of the country in Brussels, as well (for example, Cyprus) to veto Macedonia. In that case we will find as the experts and intellectuals for pursuing somebody else’s agenda ourselves at level zero, only to realize that we lost 4 precious years in (read: the opposition). implementing politics doomed to fail. To implement this strategy, VMRO-DPMNE will need all the help it Hopefully, our political elite will see the inevitability of fulfilling can get. The support of the diaspora would be welcomed, which will the indicators set in the Review 2010 as the best solution for the initially assume the position that the name is sacred, and that no future of Macedonia. In the meantime, we will monitor and analyse government has the right to change it. Activating the diaspora would go the progress made (or not made) in our next Quarterly Accession Watch hand-in-hand with the mobilization of other “independent” groups of Report. experts and intellectuals who have been advocating the terminatation of negotiations with Greece for quite some time now, but very low key. And, finally, the loyal political party soldiers would be of enormous help, as they would spread fear and abuse all those that dare to think differently than the Prime Minister Gruevski. An additional argument in the support of this strategy is the Macedonian case initiated in front of the International Court of Justice, with the rationale that “the strength of arguments” is on our side – as Minister Milosevski likes to say – and that a ruling in our favour would significantly strengthen our negotiation positions. Subsequently, time will be on Gruevski’s side, on the one hand, and he will look more serious in the eyes of the international community. As regards the lawsuit Macedonia motioned against Greece, we have

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